Global Payments Inc. priced an offering of $3.0 billion aggregate principal amount of senior unsecured notes.
The offering consists of $1.0 billion of 2.650% senior unsecured notes due 2025, $1.25 billion of 3.200% senior unsecured notes due 2029 and $750 million of 4.150% senior unsecured notes due 2049.
The transaction is expected to close Aug. 14. It is being conducted in connection with the proposed merger of the company and Total System Services Inc.
Global Payments intends to use the net proceeds from the offering, together with cash on hand and borrowings under its new unsecured $2.0 billion term loan facility and new unsecured $3.0 billion revolving credit facility, to refinance certain outstanding indebtedness of the company and Total System Services. It also plans to use the funds to make cash payments in lieu of fractional shares as part of the merger consideration, to pay transaction fees and costs related to the merger and for general corporate purposes.