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Xerox closes on $2 billion debt offering

Xerox Corp. said Friday it has closed on a $2 billion offering of unsecured notes.

Of the notes, $1 billion will mature in February 2015 and bear interest at a fixed-rate coupon of 4.25 percent; $650 million will mature in December 2019 at 5.625 percent; and $350 million will mature in December 2039 at 6.75 percent, the company said.

Net proceeds from the offering will be used in connection with the acquisition of Texas-based Affiliated Computer Services Inc. On Sept. 28, Xerox announced a definitive agreement to acquire ACS in a $6.4 billion cash and stock transaction. 

"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," said Lawrence Zimmerman, Xerox vice chairman and chief financial officer, in a statement.

Xerox also reiterated its fourth-quarter earnings guidance Friday, noting it is on track to deliver 20 cents to 22 cents earnings a share, excluding 6 cents a share of ACS acquisition-related costs.

Shares of Xerox (NYSE: XRX) were trading midday at $7.87, up 1.4 percent from Thursday’s close of $7.76.

 (c) 2009 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail [email protected].


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