The Western Union Company today announced that it has completed
its previously announced spin-off from First Data Corp. (NYSE: FDC)
and expects that shares of its common stock will begin regular trading
on the New York Stock Exchange (NYSE) under the symbol "WU" on Monday,
Oct. 2, 2006. The newly independent company will be a member of the
S&P 500. Western Union President and Chief Executive Officer Christina
Gold will ring the opening bell at the NYSE on Wednesday, Oct. 4,
2006, to celebrate the occasion.
In addition, Western Union announced that the company's Board of
Directors has approved a stock repurchase program that authorizes the
purchase of up to $1.0 billion of Western Union common stock prior to
Dec. 31, 2008, subject to market conditions. Stock purchases under the
program will be made from time to time in the open market on such
terms as are deemed to be in the best interests of Western Union. In
connection with the spin-off, the company secured $3.5 billion of debt
financing.
"Today marks the beginning of an exciting new chapter in Western
Union's celebrated 150-year history," said Ms. Gold. "The separation
from First Data creates rich opportunities for Western Union to
continue to strengthen our brand, expand and deepen our relationships
with consumers and agents, and re-invest our strong cash flow in
growing the business. With our vast distribution network of more than
270,000 agent locations in over 200 countries and territories, as well
as our marquis brand, financial strength, seasoned management team and
Board, and dedicated employees, Western Union is well positioned to
continue to be a leading provider of money transfer services in the
world. Going forward, we intend to continue to grow by capitalizing on
long-term global migration trends and increasing cross-border
remittances."
Ms. Gold concluded: "We look forward to building a future as
bright as our past and continuing to provide consumers with the
fastest, most reliable and most convenient ways to send money anywhere
in the world."
In connection with the spin-off, today First Data shareholders
received one share of Western Union common stock for every one share
of common stock they held in First Data as of the Sept. 22, 2006
record date. Approximately 765 million shares of Western Union common
stock were distributed.
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release may contain forward-looking statements.
Forward-looking statements include all statements that do not relate
solely to historical or current facts. All forward-looking statements
are inherently uncertain as they are based on various expectations and
assumptions concerning future events and they are subject to numerous
known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those projected. These
factors include, but are not limited to: the impact of our spin-off
from First Data Corporation; changes in immigration laws, patterns and
other factors related to immigrants; the integration of significant
businesses and technologies we acquire and realization of anticipated
synergies from these acquisitions; technological changes, particularly
with respect to e-commerce; our ability to attract and retain
qualified key employees; changes in laws, regulations or industry
standards affecting our businesses; changes in foreign exchange
spreads on money transfer transactions; changes in the political or
economic climate in countries in which we operate; continued growth at
rates approximating recent levels for consumer money transfer
transactions and other product markets; our ability to compete
effectively in the money transfer industry with respect to global and
niche or corridor money transfer providers, United States and
international banks, card associations, card-based payments providers
and a number of other types of competitive service providers; our
ability to maintain our agent network; implementation of Western Union
agent agreements with governmental entities according to schedule and
no interruption of relations with countries in which Western Union has
or is implementing material agent agreements; successfully managing
the potential both for patent protection and patent liability in the
context of rapidly developing legal framework for expansive software
patent protection; successfully managing credit and fraud risks from
our agents and from consumers; unanticipated developments relating to
lawsuits, investigations or similar matters; catastrophic events; and
any material breach of security of any of our systems. For more
information on important factors upon which these forward-looking
statements are premised, please refer to The Western Union Company
Form 10, as amended, filed with the Securities and Exchange
Commission.
About Western Union
Western Union, together with its affiliates Orlandi Valuta and
Vigo, are leaders in global money transfer, providing people with
fast, reliable and convenient ways to send money around the world, pay
bills and purchase money orders through a network of over 270,000
agent locations in more than 200 countries and territories. For more
information, visit www.westernunion.com.
