On May 7, 2025, Fiserv, Inc., a leading global provider of payment and financial technology solutions, completed a significant refinancing transaction which marks a strategic expansion of its debt capital structure. This 8-K filing announced the issuance of senior notes totaling €2.175 billion split across three tranches: €750 million in 2.875% senior notes due 2028, €775 million in 3.5% senior notes due 2032, and €650 million in 4.0% senior notes due 2036. This move highlights Fiserv’s robust financial strategy aimed at managing long-term capital with competitive interest rates and maturities spread over multiple years, thus optimizing cash flow planning and capital cost.
This offering was completed by Fiserv Funding Unlimited Company, an indirect wholly owned subsidiary of Fiserv, Inc. The notes are senior unsecured obligations fully and unconditionally guaranteed by Fiserv. The issuer appointed U.S. Bank Europe DAC as paying agent, reinforcing strong operational oversight. Interest on these notes is payable annually in arrears beginning June 15, 2025, with maturities set respectively for June 15, 2028, 2032, and 2036.
KEY FINANCIAL IMPACT - Total Notes Issued: €2.175 Billion (approx. $2.38 Billion at current exchange rates) - Interest Rates: 2.875% (2028 Notes), 3.5% (2032 Notes), 4.0% (2036 Notes) - Maturity Dates: 2028, 2032, 2036
The senior notes enhance Fiserv’s liquidity profile with longer duration debt options complementing its existing liabilities position, which was approximately \(49.49 billion as of fiscal year ending December 31, 2024. The interest expense from existing debt stood at \)1.238 billion for 2024, reflecting robust fixed cost obligations. The new notes, while adding to total debt, diversify maturity profiles reducing refinancing risk and allow Fiserv to potentially capitalize on favorable interest rate environments.
REDEMPTION AND COVENANT DETAILS The notes incorporate standard redemption terms allowing Fiserv Funding to redeem notes prior to maturity on specified “par call dates”. Additionally, change of control repurchase provisions are in place requiring a repurchase price of 101% plus accrued interest, providing protection for noteholders against corporate ownership shifts.
PREVIOUS EARNINGS INSIGHT Fiserv’s prior earnings commentary consistently emphasized their commitment to maintaining strong capital structure flexibility amidst economic uncertainties and government efficiency-related cost challenges. They have highlighted strategic debt management as part of their operational resilience measures in discussions throughout 2024, aligning with this recent refinancing event.
In conclusion, Fiserv’s €2.175 billion senior notes issuance reflects disciplined capital markets strategy strengthening its financial foundation. This expanded debt maturity ladder supports Fiserv’s long-term operational and strategic goals amid evolving market conditions.
Source Document: https://sec.gov/Archives/edgar/data/798354/000119312525115067/d25412d8k.htm