Notes Sold by Fidelity National

Fidelity National Financial Inc., building a war chest for future acquisitions, sold $205 million in notes in a public offering Tuesday to raise $90.8 million for the company’s coffers.

Executives for the parent company of the nation’s fifth-largest title insurer have not lined up any specific deals but have “some ideas” for acquisitions, said William P. Foley II, Fidelity’s chairman.

The company will also use up to $15.5 million of the proceeds to retire inter-corporate debts related to the 1992 acquisition of Meridian Title Insurance Co. in Reading, Pa.

Besides the total amount sold, Merrill Lynch & Co. has a 30-day option to purchase an additional $30.75 million worth of the corporate IOUs as a special incentive for its work in guaranteeing Tuesday’s sales. The additional notes, if sold, would bring $13.6 million to the company.

Investors on Tuesday paid $443.14 for every $1,000 in notes, which carry a 5.5% interest rate and are to be repaid in 15 years. Investors can convert the notes to stock, and the company has the right to pay off investors after five years.

Fidelity’s stock price dropped 62.5 cents a share to close Tuesday at $19.125 a share on the New York Stock Exchange.