Global Payments Launches $6.2 Billion Bond Sale to Fund Worldpay Acquisition

Global Payments Inc. embarked on a major bond sale, seeking to raise $6.2 billion in the corporate bond market to support its acquisition of a stake in Worldpay Inc. The company began marketing a dollar bond sale, with the sale structured in as many as four parts, ranging from three to 10 years, according to a person with knowledge of the matter. The initial price talk on the 10-year note indicated a premium of about 1.75 percentage points above Treasuries, the person said. This move reflects the company's efforts to secure funding for its strategic acquisition, which is expected to expand its global payment processing capabilities. The bond sale is a significant development in the global payments industry, with Global Payments Inc. aiming to bolster its position in the market. The company's acquisition of a stake in Worldpay Inc. is seen as a strategic move to enhance its offerings and expand its reach in the digital payments space. Global Payments Inc. is a leading provider of payment and banking solutions, with operations in over 100 countries worldwide. The company's acquisition of Worldpay Inc. is expected to create a major player in the global payments market, with a combined entity valued at over $20 billion. The bond sale is also a reflection of the company's confidence in its business prospects, despite the ongoing challenges posed by the COVID-19 pandemic and the evolving regulatory landscape. The company's decision to raise funds through a bond sale rather than equity issuance suggests that it is seeking to maintain its financial flexibility and avoid diluting its ownership structure. The global payments industry is expected to continue growing in the coming years, driven by the increasing adoption of digital payments and the rise of e-commerce. The industry's growth is also expected to be driven by the increasing demand for mobile payments, contactless transactions, and other emerging payment technologies. In conclusion, Global Payments Inc.'s $6.2 billion bond sale is a significant development in the global payments industry, reflecting the company's efforts to secure funding for its strategic acquisition and bolster its position in the market. The company's acquisition of a stake in Worldpay Inc. is expected to create a major player in the global payments market, with a combined entity valued at over $20 billion.