Mastercard Prices $3.5B Notes Offering

Ticker: MA · Form: 8-K · Filed: 2024-03-26T00:00:00.000Z

Sentiment: neutral

Topics: debt-offering, financing, corporate-action

Related Tickers: MA

TL;DR

MC just dropped $3.5B in new debt for buybacks/acquisitions.

AI Summary

Mastercard Incorporated announced on March 26, 2024, the pricing of an underwritten offering of senior unsecured notes. The offering includes $1.5 billion aggregate principal amount of 2.1% notes due 2027, $1.0 billion of A10 notes due 2029, and $1.0 billion of 2.5% notes due 2030. The net proceeds from the offering are intended to be used for general corporate purposes, including potential share repurchases and acquisitions.

Why It Matters

This debt issuance allows Mastercard to raise significant capital, potentially funding future growth initiatives like share buybacks and acquisitions, which could impact its stock value and market position.

Risk Assessment

Risk Level: low — The filing is a routine debt offering announcement with no immediate negative financial implications for the company.

Key Numbers

Key Players & Entities

FAQ

What is the total principal amount of the notes being offered by Mastercard?

Mastercard is offering an aggregate principal amount of $3.5 billion in senior unsecured notes, comprised of $1.5 billion of 2.1% notes due 2027, $1.0 billion of A10 notes due 2029, and $1.0 billion of 2.5% notes due 2030.

What are the maturity dates for the notes being issued?

The notes have maturity dates in 2027, 2029, and 2030.

What are the stated interest rates for the notes?

The notes carry interest rates of 2.1% for the notes due 2027 and 2.5% for the notes due 2030. The rate for the A10 notes due 2029 is not explicitly stated in the provided text but is referred to as 'A10'.

What does Mastercard intend to use the net proceeds from this offering for?

The net proceeds are intended for general corporate purposes, which may include share repurchases and acquisitions.

When was the date of the earliest event reported in this 8-K filing?

The date of the earliest event reported is March 26, 2024.

From the Filing

0001141391-24-000060.txt : 20240326 0001141391-24-000060.hdr.sgml : 20240326 20240326085654 ACCESSION NUMBER: 0001141391-24-000060 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20240326 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240326 DATE AS OF CHANGE: 20240326 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mastercard Inc CENTRAL INDEX KEY: 0001141391 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] ORGANIZATION NAME: 07 Trade & Services IRS NUMBER: 134172551 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32877 FILM NUMBER: 24781159 BUSINESS ADDRESS: STREET 1: 2000 PURCHASE STREET CITY: PURCHASE STATE: NY ZIP: 10577 BUSINESS PHONE: 9142492000 MAIL ADDRESS: STREET 1: 2000 PURCHASE STREET CITY: PURCHASE STATE: NY ZIP: 10577 FORMER COMPANY: FORMER CONFORMED NAME: MASTERCARD INC DATE OF NAME CHANGE: 20010525 8-K 1 ma-20240326.htm 8-K ma-20240326 false 0001141391 0001141391 2024-03-26 2024-03-26 0001141391 us-gaap:CommonClassAMember 2024-03-26 2024-03-26 0001141391 ma:TwoPointOnePercentNotesDue2027Member 2024-03-26 2024-03-26 0001141391 ma:A10NotesDue2029Member 2024-03-26 2024-03-26 0001141391 ma:TwoPointFivePercentNotesDue2030Member 2024-03-26 2024-03-26 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 8-K _______________________________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 26, 2024 _______________________________________ Mastercard Incorporated (Exact name of registrant as specified in its charter) _______________________________________ Delaware 001-32877 13-4172551 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 2000 Purchase Street 10577 Purchase, NY (Address of principal executive offices) (Zip Code) (914) 249-2000 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)   ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)   ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))   ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange of which registered Class A common stock MA New York Stock Exchange 2.1% Notes due 2027 MA27 New York Stock Exchange 1.0% Notes due 2029 MA29A New York Stock Exchange 2.5% Notes due 2030 MA30 New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 1 Item 8.01 Other Events. On March 26, 2024, Mastercard Incorporated (the “Company”) announced that the Company and its operating subsidiary, Mastercard International Incorporated, have entered into a Class Settlement Agreement (the "Agreement") with court-appointe

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