) declared the pricing of its senior notes offering of principal
amount $700 million, due to mature in 2022. The senior notes carry
an interest rate of 3.500%.
The company expects the offering to be completed by September
25, 2012, upon the fulfillment of certain customary conditions.
Book-running managers currently acting for this notes offering are
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo
Securities, LLC, Mitsubishi UFJ Securities (USA), Inc. and U.S.
Bancorp Investments, Inc.
The net proceeds from the offering shall be used to repay a part
of the company's term loan facility, which is due to mature in
The company exited the second quarter of 2012 with cash and cash
equivalents of $302 million, decreasing from $311 million at the
end of the previous quarter. Long-term debt remained somewhat
consistent at $3.2 billion compared with the previous quarter.
Year-to-date, net cash provided by operating activities amounted to
$385 million with free cash flow of $298 million (net capital
expenditures being $102 million).
For the full year 2012, management projects an annual adjusted
revenue growth of 4%-6% and adjusted internal revenue growth of
3.0% - 4.5%. Adjusted earnings per share are likely to be in the
range of $5.08 - $5.20, representing a yearly growth of
The company's primary competitors include big players such as
Fidelity National Information Services, Inc.
Total System Services, Inc.
). Moreover, Fiserv faces an ongoing threat from billers and
self-sufficient financial institutions that develop and use their
own electronic payment transactions and Internet banking
We have a Neutral recommendation on Fiserv. The stock retains a
Zacks# 3 Rank ('Hold' rating in the short term).
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