Xerox closes $800M debt offering, funds will help pay for Lexmark buy
PHOTO | CONTRIBUTED
Xerox headquarters in Norwalk
Norwalk-based Xerox Corp. said it has closed an $800 million debt offering, with half of the proceeds going toward paying for its planned acquisition of Lexmark International Inc.
Xerox announced in late December that it agreed to acquire Lexmark — a Lexington, Kentucky-based maker of laser printers and a Xerox supplier — for $1.5 billion from China’s Ninestar Corp., PAG Asia Capital, and Shanghai Shouda Investment Centre.
In late March, Xerox said it offered $400 million in senior secured first lien notes due 2030, and $400 million in senior second secured first lien notes due 2031 to “qualified institutional investors."
Xerox said it plans to use the proceeds from the second lien notes offering to pay for part of the proposed acquisition of all of Lexmark’s outstanding equity securities and repay all of Lexmark’s outstanding debt.
Those proceeds will be held in an escrow account until Xerox’s acquisition of Lexmarx is complete.
Xerox said it intends to use the proceeds from $400 million in first lien notes offering and cash on hand to pay off $90 million in 5% senior notes due 2025.
It also plans to use the proceeds for general corporate purposes that include repaying $95 million in principal payments owed on its first lien senior secured term loan credit facility.
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