First Data Holdings Inc., the parent company of First Data Corporation, has netted $3.5 billion of its common equity from the closing of private placement commitments made in June.
The private placement will produce interest savings of $375 million for the company. Total interest savings could reach $440 million, following the completion of two additional actions: Re-pricing of $5.7 billion in term loans and securing additional term loans to pay remaining balance of Senior PIK Note at First Data Holdings Inc.
The private placement and term loans will allow First Data to reduce Senior PIK principal from approximately $1.5 billion to $216 million.
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“The closing of our historic private placement of $3.5 billion represents a major vote of confidence in our client-focused strategy from the investment community,” said Frank Bisignano, Chairman and CEO at First Data. “This investment unlocks interest savings to help us accelerate our transformation and strengthen our commitment to help our clients thrive, from the world’s largest financial institutions to the smallest merchants who use our products and services to grow their businesses.”
