Fiserv Inc Announces Major 2.175 Billion Senior Notes Offering Impacting Financial Strategy in 2025

On April 29, 2025, Fiserv, Inc. (NYSE: FI) and its wholly owned subsidiary, Fiserv Funding Unlimited Company, entered into a significant underwriting agreement for a public offering of senior notes totaling 2.175 billion. This strategic financing move includes three tranches of senior notes: 750 million of 2.875% Senior Notes due 2028, 775 million of 3.500% Senior Notes due 2032, and 650 million of 4.000% Senior Notes due 2036, all guaranteed by Fiserv, underscoring the company’s solid credit profile. The offering is scheduled to close on May 7, 2025, pending customary closing conditions.

Who: Fiserv, Inc., a leading global provider of financial technology services headquartered in Milwaukee, Wisconsin. What: Announcement and execution of a 2.175 billion senior notes public offering across multiple maturities to optimize capital structure and fund growth initiatives. When: Underwriting agreement executed on April 29, 2025; offering expected to close May 7, 2025. Where: Offering registered in the U.S. under the Securities Act of 1933 via the SEC, with notes listed on the New York Stock Exchange under various tickers (FI27, FI30, FI25, FI31, FI31A).

This capital raise arrives at a pivotal time as Fiserv demonstrated robust financial performance in 2024, with GAAP revenues increasing 7% to \(20.46 billion and GAAP EPS ascending 8% to \)5.38. The company’s Merchant Solutions and Financial Solutions segments reported 10% and 4% revenue growth respectively, signaling positive momentum. Cash flow strength is evident from operating cash flow of \(6.63 billion and free cash flow of \)5.23 billion for the year. Given these metrics, the 2.175 billion debt issuances are likely part of Fiserv’s strategic plan to leverage current market conditions, refinance existing debt, and fuel organic growth forecasted between 10% and 12% in 2025.

Quoting Robert W. Hau, Fiserv’s CFO, “Our new senior notes offering strategically positions us to capitalize on growth opportunities while optimizing our capital structure and maintaining financial flexibility.”

The weighted average coupon rates across the offerings-2.875% for 2028 notes, 3.500% for 2032 notes, and 4.000% for 2036 notes-reflect market confidence in Fiserv’s creditworthiness and long-term outlook. These notes will be governed by a recently executed Indenture dated April 24, 2025, with U.S. Bank Trust Company, National Association, appointed as trustee.

In the context of prior earnings discussions, management highlighted a disciplined capital allocation approach balancing growth investments with debt management. This 2.175 billion issuance aligns with their prudent leverage philosophy engineered to support sustainable expansion.

In conclusion, Fiserv’s recent 8-K filing signals a strong financial strategy bolstered by market conditions and operational performance. Investors and market participants should view this offering as an affirmation of Fiserv’s credit strength and growth trajectory as it pursues its ambitious 2025 forecasts.

For detailed document access, visit the official SEC filing here: https://sec.gov/Archives/edgar/data/798354/000119312525107161/d868060d8k.htm

Tags: FiservSeniorNotes, DebtOffering2025, FinancialTechnologyCapital, CorporateFinanceStrategy, FiservGrowth2025