Xerox Corp. Closes On $2 Billion Of Senior Unsecured Notes
Earlier this week Xerox Corporation (NYSE:XRX) closed on a $2 billion offering of senior unsecured notes. About $1 billion of the notes will mature in February 2015 with an interest at a fixed rate coupon of 4.25%. Around $650 million will mature in December 2019 at 5.625%, $350 million will mature in December 2039 at 6.75%.
Some of the proceeds of the offering will be used with the acquisition of Affiliated Computer Services. Xerox bought outsourcing firm ACS for $5.5 billion this past September.
“This successful financing reflects investors’ confidence in the strength of Xerox’s financial position and in the acquisition of Affiliated Computer Services, which will increase Xerox’s already strong free cash flow and enhance our annuity-based business model,” stated Xerox Vice Chairman and CFO Lawrence A. Zimmerman.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry