Summary
Fidelity National Information Services, Inc. (FIS) filed an 8-K on January 19, 2007, to report the entry into a new, significant Credit Agreement dated January 18, 2007. This new agreement replaces two prior credit facilities, consolidating FIS's debt structure. The new agreement includes a substantial $2.1 billion five-year term loan facility and a $900 million revolving credit facility, with options for multicurrency borrowing. Notably, the $2.1 billion term loan was fully drawn upon closing, indicating the company's immediate use of these funds. The company also successfully terminated its prior Bank of America Credit Agreement without incurring early termination penalties.
Key Highlights
- 1FIS entered into a new, consolidated Credit Agreement on January 18, 2007.
- 2The new agreement establishes a $2.1 billion five-year term loan and a $900 million revolving credit facility.
- 3The $2.1 billion term loan was fully drawn at closing, signifying immediate funding utilization.
- 4The revolving credit facility includes multicurrency options and sublimits for letters of credit and swingline loans.
- 5The new Credit Agreement replaces two previous credit facilities, simplifying FIS's debt structure.
- 6FIS terminated its prior Bank of America Credit Agreement without incurring early termination penalties.
- 7The Credit Agreement contains customary affirmative, negative, and financial covenants, including leverage and interest coverage ratios.
Frequently Asked Questions
The primary purpose of this 8-K filing is to announce Fidelity National Information Services, Inc.'s (FIS) entry into a new, material Credit Agreement and the termination of prior credit agreements, as required by SEC regulations for significant corporate events.
The new Credit Agreement includes a $2.1 billion five-year term loan facility (fully drawn at closing) and a $900 million revolving credit facility that matures in five years. The revolving facility has a sublimit for letters of credit and swingline loans, and a portion can be denominated in multiple currencies.
This new Credit Agreement consolidates and replaces two previous credit facilities. The company terminated its Bank of America Credit Agreement and an Amended and Restated Credit Agreement with Wachovia Bank, N.A., simplifying its debt arrangements and potentially improving borrowing terms.
According to the filing, FIS terminated the Bank of America Credit Agreement without incurring any early termination penalties. The full repayment of the prior agreement was approximately $2.64 billion.