Western Union determines price for exchange offer for $500 million in old notes

Western Union sets price for notes exchange offer

ENGLEWOOD, Colo. — Payment services company Western Union Co. on Thursday said it has determined the total exchange price in connection with its offer made earlier this month to exchange up to $500 million in 5.4 percent notes due in 2011.

Holders of old notes who validly tender their old notes in exchange for a new series of notes due in 2020 will receive the total exchange price, including the early participation payment.

For each $1,000 principal amount of old notes, those who participate will receive $1,070.10 principal amount of new notes. The new notes will bear interest from the settlement date, which is expected to be Tuesday, at a rate equal to 5.253 per year.

Holders who exchange their old notes will also receive accrued and unpaid interest on the old notes to, but not including, the settlement date and cash in lieu of any fractional amounts of new notes which result from the application of the total exchange price.

The company said at least $250 million worth of the old notes will have to be tendered for the offer to go through. The offer expires at midnight on Monday.

Western Union shares closed Thursday trading up 9 cents at $16.97.