Norwalk-based Xerox Corp. has offered $800 million in debt, partly in an effort to pay for its planned acquisition of Lexmark International Inc.
Xerox announced in late December that it has agreed to acquire Lexmark, a Lexington-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.
Xerox said today that it has 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.
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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