First Data's sale of $3.5 billion of its common equity in the private placement market closed on Friday, July 11.

The transaction, which was initially announced June 19, is expected to save the payments processing company $375 million in interest payments due to a restructured corporate debt. These savings, plus the re-pricing of existing loans, will also help the company pay its debt faster, First Data says in a July 15 press release. The private placement and other financial activity will reduce the principal on First Data's debt from about $1.5 billion to $216 million, First Data says in the release.

"This investment unlocks interest savings to help us accelerate our transformation and strengthen our commitment to help our clients thrive, from the world's largest financial institutions to the smallest merchants who use our products and services to grow their businesses," says Frank Bisignano, First Data's chairman and CEO, in the release.

The transaction should also bolster the company's recovery from an earnings slump suffered over the past couple of years. First Data hopes business related to the U.S. EMV migration, adoption of its Clover mobile point of sale system, and its embrace of new security technology will drive its recovery.

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