8-KMaterial AgreementsFinancial EventsExhibits & Filings

Fidelity National Information Services, Inc. 8-K Report, Material Agreement (Jul 2, 2010)

Filed July 2, 2010For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) filed an 8-K on July 2, 2010, detailing material amendments to its credit facilities. The company entered into an amendment and restatement of its Credit Agreement, which increased its committed capital through an Incremental Term Loan A and additional revolving credit commitments. This move is primarily to facilitate the prepayment of a portion of the outstanding principal of a term loan acquired during the Metavante acquisition, thereby restructuring its debt obligations. The company also amended its Receivables Purchase Agreement (AR Facility) to align certain provisions with the revised FIS Credit Agreement. These actions reflect FIS's ongoing efforts to manage its debt structure, optimize its financing arrangements, and maintain financial flexibility following significant corporate actions. Investors should note the increased debt capacity and the strategic repayment of acquisition-related debt.

Key Highlights

  • 1FIS amended and restated its Credit Agreement, increasing committed capital by $562.8 million in term loans (Incremental Term Loan A) and $141.2 million in revolving credit commitments.
  • 2The Incremental Term Loan A proceeds were used to prepay a portion of the outstanding principal of the Metavante acquisition term loan, reducing its balance to $230.0 million.
  • 3The Credit Agreement includes provisions allowing for further potential debt increases, including a new Term Loan B of up to $2,837.2 million and additional term/revolving loans up to $750 million.
  • 4The company's Revolving Loan is structured into U.S. Dollar and multicurrency tranches, with significant borrowing capacity remaining as of June 30, 2010 ($722.9 million).
  • 5Mandatory principal payments are outlined for Term Loan A-1 and A-2, with varying quarterly payment schedules and maturity dates extending to July 18, 2014.
  • 6The FIS Credit Agreement is guaranteed by most domestic subsidiaries and secured by pledges of capital stock in domestic and foreign entities.
  • 7FIS also amended its Receivables Purchase Agreement (AR Facility) to align its terms with the updated FIS Credit Agreement.

Frequently Asked Questions

The primary purpose was to increase FIS's committed capital, primarily through an Incremental Term Loan A, which was used to prepay a portion of the outstanding debt from the Metavante acquisition. This restructuring aims to manage debt obligations and provide financial flexibility.

Beyond the Incremental Term Loan A and revolving credit commitments, the agreement allows FIS to potentially obtain a new Term Loan B of up to $2,837.2 million and additional term and revolving credit loans up to $750 million, subject to obtaining lender commitments.

Term Loan A-1 requires quarterly principal payments of $9.9 million from September 2010 through September 2011, with the balance due January 18, 2012. Term Loan A-2 has quarterly payments of $50.1 million from September 2010 through December 2012, increasing to $75.1 million quarterly from March 2013 through March 2014, with the remainder due July 18, 2014. The Metavante acquisition term loan, after prepayment, has no further mandatory quarterly payments and is due November 1, 2014.

The AR Facility was amended to align certain representations, warranties, and covenants with the revised terms of the FIS Credit Agreement. This ensures consistency between the company's financing arrangements.