Xerox Holdings Corp. (NYS:XRX) has entered into a first lien term loan credit agreement for $550 million to cover the recent purchase of all company shares previously owned by activist investor Carl Icahn.
According to a Print Week report, the Norwalk-based company announced the credit facility in a Nov. 20 filing with the U.S. Securities and Exchange Commission that stated “the proceeds of the loans will be used to repay in full all outstanding bridge loans extended to Xerox under its bridge credit agreement, entered into with, among others, Jefferies Finance LLC, as administrative agent, and the lenders party thereto”.
The filing listed Jefferies Finance LLC, Citibank N.A., Credit Agricole Corporate and Investment Bank, PNC Capital Markets LLC, Mizuho Bank, Ltd., The Bank of Nova Scotia, and HSBC Securities (USA) Inc. as joint lead arrangers and joint bookrunners.
Xerox acquired Icahn’s shares for a purchase price of $15.84 per share – a transaction worth approximately $542 million. Icahn played a key role in scuttling Xerox’s planned merger with Fujifilm Holdings and in the company’s aborted hostile takeover of HP prior to the onset of the pandemic.
“Our decision to repurchase shares is reflective of the confidence we have in our business, our strategy and our ability to improve Xerox profitability and cash performance,” said Steve Bandrowczak, CEO of Xerox, when announcing the share purchase transaction.
