Western Union releases pricing in exchange offer for 5.4% notes

By Jennifer Chiou

New York, March 25 - Western Union Co. announced pricing in its offer to exchange up to $500 million of its 5.4% notes due 2011.

The company is offering new 5.253% notes due April 1, 2020 in exchange for the 5.4% notes.

For each $1,000 principal amount of tendered old notes tendered, using a yield of 1.052%, Western Union said it will issue $1,070.10 of new notes.

The coupon on the new notes is the yield of the 10-year Treasury plus 135 basis points.

The deadline for the offer is midnight ET on March 29, coinciding with the early participation deadline that was previously extended from March 15.

Settlement is expected to occur on March 30.

As of 5 p.m. ET on March 15, about $279 million old notes had been tendered, pushing the company past the condition that at least $250 million of the notes be tendered.

If more than $500 million of old notes are tendered, the company will accept notes on a pro rata basis.

The exchange offer is only being made to holders of old notes who have certified to the company in an eligibility letter their status as either "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, or persons other than "U.S. persons," as defined in Rule 902 under the Securities Act.

The information agent is Global Bondholder Services Corp. (866 488-1500 or 212 430-3774).

Western Union is a money-transfer company based in Englewood, Colo.

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