First Data said Wednesday that it priced 160 million shares at $16 each, below its expected $18 to $20 IPO price range. First Data is expected to begin trading later Thursday on the New York Stock Exchange under the ticker “FDC.” Underwriters on the deal have the option to buy another 24 million of shares at the IPO price. Citigroup, Morgan Stanley, BofA Merrill Lynch and KKR are joint book runners on the deal. First Data is portfolio company of KKR.
NEW YORK, OCTOBER 14, 2015 – First Data (“First Data”) today announced the pricing of its initial public offering of 160,000,000 shares of its Class A common stock at $16.00 per share. Shares of First Data’s Class A common stock are expected to begin trading on the New York Stock Exchange on October 15, 2015 under the symbol “FDC,” and the offering is expected to close on October 20, 2015, subject to customary closing conditions. First Data has granted the underwriters a 30-day option to purchase up to an additional 24,000,000 shares of its Class A common stock at the initial public offering price.
First Data will receive net proceeds of approximately $2.5 billion after deducting underwriting discounts and commissions and intends to use the net proceeds from the offering to redeem all $510 million aggregate principal amount of its 11.25% senior unsecured notes due 2021, approximately $1.6 billion aggregate principal amount of its 12.625% senior unsecured notes due 2021, and to pay applicable premiums and related fees and expenses, and for general corporate purposes.
Citigroup, Morgan Stanley, BofA Merrill Lynch and KKR are acting as joint bookrunning managers of the offering and the representatives of the underwriters. Barclays, Credit Suisse, Deutsche Bank Securities, Goldman, Sachs & Co., HSBC, Mizuho Securities, PNC Capital Markets LLC, SunTrust Robinson Humphrey and Wells Fargo Securities are acting as bookrunners of the offering, and Allen & Company LLC, BBVA and Cowen and Company are acting as co-managers of the offering.
A registration statement, including a prospectus, relating to the offering of shares of the Class A common stock of First Data has been declared effective by the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The offering of these securities will be made only by means of a prospectus. Copies of the prospectus may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (800) 831-9146; Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; BofA Merrill Lynch, Attn: Prospectus Department at 222 Broadway, New York, NY 10038, or by email at email@example.com; or KKR, 9 West 57th Street, New York, NY 10019, or by phone at (212) 750-8300.
About First Data
First Data is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and 4,000 financial institutions in 118 countries around the world. The company’s 23,000 owner-associates are dedicated to helping companies, from start-ups to the world’s largest corporations, conduct commerce every day by securing and processing more than 2,300 transactions per second and $1.9 trillion per year.
Forward Looking Statements
This press release includes certain disclosures which contain “forward-looking statements.” You can identify forward-looking statements because they contain words such as “believes” and “expects.” Forward-looking statements are based on First Data’s current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our filings with the SEC, including our registration statement on Form S-1, as amended from time to time, under the caption “Risk Factors.”