NCR signed definitive agreements to acquire Radiant Systems POS and managed hosted service solutions to the hospitality and specialty retail markets for an equity purchase price of $1.2 billion. NCR and Radiant Systems currently anticipate the transaction will close during the third quarter of 2011, subject to regulatory approval. The transaction accelerates NCR’s strategy of expanding into core industry adjacencies and will allow it to create a third core industry vertical, after its Financial and Retail lines of business, and establish category leadership in the hospitality and specialty retail markets. The tender offer is expected to commence on or before July 25, 2011. The offer will be open for a period of not less than 20 business days from its commencement and will be conditional upon, among other things, valid acceptances of the offer in respect of shares representing more than 50% of the outstanding Radiant Systems shares on a fully diluted basis as well as satisfactory completion of other customary closing conditions, including regulatory approval. NCR plans to raise approximately $1.1 billion of new funded debt to finance the transaction. The financing will enable NCR to maintain a strong liquidity position post transaction. J.P. Morgan, RBC Capital Markets, BofA Merrill Lynch and Morgan Stanley provided committed financing to NCR for the transaction.
Fiserv’s previously announced tender offer to purchase for cash any and all of its $1.0 billion outstanding aggregate principal amount of 6.125% Senior Notes due 2012 expired at 5:00 p.m. EST on June 13. If the conditions to the Tender Offer are satisfied or waived, the Company will accept for purchase and make payment for all of the 2012 Notes validly tendered and not validly withdrawn prior to the expiration of the Tender Offer, representing a total aggregate principal amount of approximately $699,802,000, tomorrow, June 14, 2011. In addition to the Total Consideration, the Company will also pay accrued and unpaid interest on the Notes purchased from the last interest payment date up to, but not including, the settlement date in the amount of $4.08 per $1,000.
Bank of America announced a $50,000 commitment to aid communities affected by last night’s tornados in western and central Massachusetts, half of which will be directed to the American Red Cross in support of their immediate recovery efforts, while the other half will be used in the coming weeks and months as the rebuilding process gets underway. In addition, the Bank of America Charitable Foundation will match employee pledges to relief efforts through the bank’s Matching Gifts program.
The director of investor relations at Intuit, will present at the Bank of America Merrill Lynch Technology Conference in New York on June 2. Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Bank of America announced it will donate $200,000 to support those affected by recent tornadoes in Missouri, including a $100,000 donation to the American Red Cross. The remaining $100,000 contribution will be directed towards the long-term recovery efforts to restore basic medical services and fund the rebuilding of homes, schools and other structures critical to the affected communities and is in addition to the $760,000 contributed to aid victims of the tornadoes that swept across the southern and eastern United States in recent weeks and part of the more than $2 million that has been contributed this year to support disaster relief needs across the company’s global footprint.
Bank of America announced an ambitious new goal to reduce its absolute greenhouse gas (GHG) emissions by 15 percent from 2011 to 2015, based on its 2010 baseline. This goal spans all of the company’s global operations in more than 40 countries and builds on its previous GHG reduction of 18 percent between 2004 and 2009, which had focused on legacy Bank of America operations in the U.S. Factoring in the addition of Countrywide and Merrill Lynch, the new target represents an overall global reduction in aggregate GHG emissions of more than 30 percent from the 2004 baseline. This is equal to annual emissions of more than 700,000 metric tons CO2-equivalent or said another way, equal to eliminating the annual GHG emissions from more than 124,000 passenger vehicles. Bank of America also announced that 20% of its corporate workplace real estate portfolio will be certified under the U.S. Green Building Council’s LEED(R) (Leadership in Energy and Environmental Design) rating system by 2015.
Bank of America kicked off its suite of small business charge cards to give small businesses more choice and control over their payment and expense management, including “Business Charge,” “Business Charge with WorldPoints Rewards” and “Business Preferred World MasterCard.” Offering businesses greater control over expenses without finance charges, the cards will be available through Bank of America banking centers and at bankofamerica.com. “Business Charge” is for small business owners who want a straightforward solution for business purchases and vendor payments with no annual fee. It gives cardholders free employee cards to set individual credit limits; zero liability protection for unauthorized transactions; expense management tools and customized spending reports.
Meanwhile, “Business Charge with WorldPoints” provides all the benefits of “Business Charge”, plus the opportunity to earn one WorldPoints reward point for every $1 spent on purchases; to redeem points for cash, gift cards, travel and brand-name merchandise; charges an annual fee of $49, which is waived the first year; and has no blackout restrictions. Lastly, the “Business Preferred Charge” offers the suite’s most robust rewards options and is designed for businesses with higher monthly spending needs. The card issues 10,000 bonus points after first purchase, 10,000 anniversary points each year and no expiration on points; double points on all airline and hotel purchases for the first 12 months; direct access to a Business Preferred service specialist; and the ability to set employee credit lines and limit employee card purchases to specific merchant categories.
Bank of America announced a series of initiatives designed to help small business owners run their businesses more efficiently and effectively. In conjunction with National Small Business Week, Bank of America is offering new payment options to manage cash flow, providing an update on its five-year, $10 billion commitment to spend more with small business suppliers, and investing in opportunities that enable small business growth. Providing more payment options to help small businesses manage cash flow, Bank of America has launched three new small business charge cards designed to give small businesses more choice and control over their payment and expense management needs. This is in addition to the Bank having spent $4.1 billion with small, medium-sized and diverse businesses in 2010, the first year of a five-year, $10 billion commitment. Bank of America is also providing other educational and advisory resources for its small business clients through its Small Business Online Community (SBOC) – www.smallbusinessonlinecommunity.com.
Bank of America announced a $500,000 commitment to the American Red Cross to aid victims of the tornadoes that swept across the Southern and Eastern United States. This includes a $400,000 grant to support efforts in North Carolina and a $100,000 grant to help with immediate and long-term recovery efforts in Oklahoma, Virginia, Mississippi and Alabama. Some of the hardest hit areas are still inaccessible, and officials are still assessing damage throughout the state. Bank of America has been in contact with the Governor’s office, which is leading the response and has declared a state of emergency.
Bank of America reported 1Q/11 net income of $2.0 billion, compared to net income of $3.2 billion a year ago and a $1.2 billion loss last quarter. Performance improved thanks in part to 30+ day delinquency rates near all-time lows, net losses declining for the sixth straight quarter, and customer payment rates improving for the seventh straight quarter. Meanwhile, its Global Card Services reported net income of $1.7 billion, up $749 million from the year-ago quarter as lower credit costs more than offset a $1.2 billion decline in revenue. The lower revenue reflected a drop in net interest income from lower yields and lower average loans, including run-off portfolios, as well as lower noninterest income due to the impact of the CARD Act as provisions became effective throughout 2010. Net income was up $224 million over the previous quarter as continued credit improvement led to lower credit costs, offsetting lower loan balances and lower yields. Provision for credit losses decreased $2.6 billion from a year ago, driven by lower net charge-offs from lower delinquencies and decreasing bankruptcies as a result of the improved economic environment.
Cabela’s Incorporated announced that its wholly owned subsidiary, World’s Foremost Bank, has entered into a $352.9 million commitment with Bank of America. Under an outstanding series of variable funding notes issued by Cabela’s Credit Card Master Note Trust, the three year commitment will provide Cabela’s CLUB Visa program members added network benefits. Adding Bank of America as a liquidity provider on the Cabela CLUB Visa program additionally allows for further spread of liquidity risks.
Bank of America Corporation announced William P. Boardman would not seek another term as director at its annual meeting of shareholders in May. Boardman was chairman of Visa International from 1996 until his retirement in 2005 and also formerly served as a director of both that company and Visa USA Inc. He was an executive at Bank One Corporation from 1984 through 2001, serving at various times as chairman and chief executive officer of its credit card subsidiary First USA and as vice chairman and director of Bank One. Previously, he practiced law in Columbus.