In a statement released earlier this week, the manufacturer said the notes would be fully and unconditionally guaranteed on a senior unsecured basis by Xerox Corporation and each of the company’s other domestic restricted subsidiaries that guarantees any of the company’s existing senior credit facilities.
The company intends to use the net proceeds from the sale of the notes to refinance its 3.800% senior notes due during 2024 and a portion of its 5.000% senior notes due 2025 through a tender offer and/or a redemption and to pay related fees and expenses in connection with such transactions.
The aggregate principal amount of the 2024 notes currently outstanding is $300m.
Xerox said the statement “does not constitute an offer to purchase or a solicitation of an offer to purchase the 2024 notes or the 2025 notes” or “a notice of redemption for purposes of the redemption provisions of the indenture governing the 2024 notes or the 2025 notes”.
It said any tender offer would be made solely pursuant to an offer to purchase to the holders of the 2024 notes and the 2025 notes.
In November, Xerox entered into a first lien term loan credit agreement for $550m, following its purchase of all of activist investor Carl Icahn's shares in the company.
In a separate statement issued last week, Xerox said it has now begun employee notifications related to its previously announced workforce reduction measures as part of its strategic reorganisation efforts.
The company is implementing a new operating model and streamlining its organisational structure to align with the evolving needs of its clients and the modern workplace landscape.
“These are difficult, but necessary decisions to meet our Reinvention commitment. We firmly believe our revamped operating model will drive operational efficiencies, both for our clients and within Xerox, and will set our business up for long-term success and sustainability in an ever-changing market environment,” the business stated.
“We are committed to treating all affected employees with dignity and respect and are providing transition services.”
