Xerox Corporation announced on April 11, 2025, the successful closing of its offering of $400 million in aggregate principal amount of 10.250% Senior Secured First Lien Notes due 2030 and $400 million in aggregate principal amount of 13.500% Senior Secured Second Lien Notes due 2031. These notes were issued in a private placement.
The net proceeds from the First Lien Notes will be used, along with cash on hand, to redeem Xerox's 5.000% Senior Notes due 2025 in full and to repay $95 million of borrowings under its first lien senior secured term loan credit facility. Xerox redeemed $90 million of the 2025 Notes on April 11, 2025, with the balance to be redeemed by maturity.
The net proceeds from the Second Lien Notes are intended to fund a portion of the purchase price for the proposed Lexmark acquisition and to repay substantially all of Lexmark's outstanding debt. These proceeds are currently held in an escrow account, contingent on the consummation of the Lexmark acquisition.
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