| Item 1.01. | Entry into a Material Definitive Agreement. |
Closing of U.S Dollar Notes Offering
General Information
On August 12, 2024, Fiserv, Inc. (the “Company”) completed the public offering and issuance of $850,000,000 aggregate principal amount of its 4.750% Senior Notes due 2030 (the “2030 Notes”) and $900,000,000 aggregate principal amount of its 5.150% Senior Notes due 2034 (the “2034 Notes” and, together with the 2030 Notes, the “Notes”).
The Notes were issued under an Indenture (the “Indenture”), dated as of November 20, 2007, between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (the “Trustee”), as supplemented by (i) a Thirty-Fifth Supplemental Indenture, establishing the terms and providing for the issuance of the 2030 Notes (the “2030 Notes Supplemental Indenture”) and (ii) a Thirty-Sixth Supplemental Indenture, establishing the terms and providing for the issuance of the 2034 Notes (the “2034 Notes Supplemental Indenture”), each dated as of August 12, 2024 and each by and between the Company and the Trustee.
Interest Rate and Maturity
The 2030 Notes Supplemental Indenture and the form of the 2030 Notes that is included therein provide, among other things, that the 2030 Notes bear interest at a rate of 4.750% per year (payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2025) and will mature on March 15, 2030. The 2034 Notes Supplemental Indenture and the form of the 2034 Notes that is included therein provide, among other things, that the 2034 Notes bear interest at a rate of 5.150% per year (payable semi-annually in arrears on February 12 and August 12 of each year, beginning on February 12, 2025) and will mature on August 12, 2034.
Optional Redemption
Prior to (i) with respect to the 2030 Notes, February 15, 2030 (one month prior to the maturity date of such notes) and (ii) with respect to the 2034 Notes, May 12, 2034 (three months prior to the maturity date of such notes) (each, a “par call date”), the Company may redeem the applicable series of Notes at the Company’s option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (a) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed discounted to the redemption date (assuming that such Notes matured on their applicable par call date), on a semi-annual basis (assuming a 360-day year composed of twelve 30-day months) at a rate equal to the Treasury Rate (as defined in the 2030 Notes Supplemental Indenture or the 2034 Notes Supplemental Indenture, as applicable), plus 15 basis points in the case of the 2030 Notes and 20 basis points in the case of the 2034 Notes, less interest accrued to the date of redemption; and (b) 100% of the principal amount of the Notes to be redeemed; plus, in either case, accrued and unpaid interest on the applicable Notes to, but not including, the redemption date. On or after the applicable par call date for the 2030 Notes and the 2034 Notes, the Company may redeem the Notes of the applicable series in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.
Repurchase Upon a Change of Control Triggering Event
The Company is required to offer to repurchase the Notes for cash at a price of 101% of the aggregate principal amount of the Notes outstanding on the date of a change of control triggering event, plus accrued and unpaid interest.
Events of Default
The Indenture, the 2030 Notes Supplemental Indenture and the 2034 Notes Supplemental Indenture contain customary events of default. If an event of default occurs and is continuing with respect to any series of the Notes, then the Trustee or the holders of at least 25% of the principal amount of the outstanding Notes of that series may declare the Notes of that series to be due and payable immediately. In addition, in the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, all outstanding Notes will become due and payable immediately.
