Visa Files Terms for IPO

Visa's two largest customers are JPMorgan Chase and Bank of America(BAC Quote), respectfully, with each generating "more than twice the issuing volume of our next largest customer," Visa said an updated annual filing. Last year, it recognized operating revenues in 2007 of $454 million from its relationship with JPMorgan Chase and $384 million from BofA.

Visa had "pro forma" revenue of $5.2 billion and a "pro forma" net loss of $861 million for its fiscal 2007 year, which ended in September, the filing said. The loss was primarily from a $1.9 billion litigation provision related to settlement of with American Express over antitrust issues in the bank-issued credit card space, as well as a $650 million provision related to Discover litigation.

Visa said in the updated registration filing that "unaudited operating revenues" were $1.5 billion for its fiscal first quarter ended Dec. 31. Its net income was $424 million for the period.

Following the IPO, Visa intends to deposit $3 billion of proceeds into an escrow account for litigation settlements. It also plans to use $10.2 billion of proceeds to buy back certain stock held by institutional holders. The rest will be used for other corporate and strategic purposes, Visa said.

Visa also plans to pay a quarterly cash dividend of 10.5 cents a share, or 42 cents annually, starting in the quarter ending in June.

Visa expects to record an additional litigation provision of approximately $285 million this quarter, it added.