Summary
Fidelity National Information Services, Inc. (FIS) filed an 8-K on April 24, 2013, reporting the significant amendment and restatement of its credit agreement, effective April 23, 2013. This action involved the establishment of a new $2.0 billion tranche of Term A-4 Loans and $2.0 billion in Revolving Credit Commitments, maturing on March 30, 2017. A key aspect of this amendment was the full repayment of the existing $1.995 billion in Term A-3 Loans. The company also secured more favorable pricing terms with a lower interest rate margin and commitment fee compared to the previous agreement, which is tied to their credit ratings. Furthermore, FIS removed certain mandatory prepayment requirements related to excess cash flow and asset dispositions, and eliminated provisions concerning liens on subsidiary equity interests. The proceeds from the new Term A-4 Loans were primarily used to repay the existing term loans, cover associated fees, and for general corporate purposes.
Key Highlights
- 1FIS amended and restated its credit agreement, creating new Term A-4 Loans and Revolving Credit Commitments totaling $4.0 billion, all maturing March 30, 2017.
- 2The company fully repaid its outstanding $1.995 billion Term A-3 Loans.
- 3The new credit agreement offers potentially lower borrowing costs through a revised, ratings-based pricing grid for both interest rates and commitment fees.
- 4Mandatory prepayment requirements tied to excess cash flow and asset dispositions were removed.
- 5Provisions related to granting liens on certain subsidiary equity interests have been eliminated.
- 6The aggregate amount of funded loans and available commitments under the restated agreement is $4.0 billion ($2.0 billion Term A-4 Loans and $2.0 billion Revolving Credit Commitments).
- 7Proceeds from the new Term A-4 Loans were used for repaying existing debt, fees, and general corporate purposes.