Fidelity National Information Services Inc. plans to sell $1.2 billion of its senior notes to help fund its previously announced share buyback program and pay back debt it took on for its October purchase of Metavante Technologies Inc.
Notes issued through the private placement offering would have maturity dates of between seven and 10 years. The Jacksonville, Fla., bank technology vendor will use the proceeds along with borrowings under a new term loan and other existing credit arrangements to pay down debt, repurchase shares and other expenses. Fidelity announced the note sale Tuesday.
Fidelity also announced the start of its stock repurchase program, through which it may buy back up to $2.5 billion worth of common stock.
The program, which Fidelity first announced in May after talks to sell the company to several private-equity firms ended, could result in the purchase of up to 86.2 million shares at $29 to $31 per share.