8-KMaterial AgreementsFinancial EventsOther Events+1

Fidelity National Information Services, Inc. 8-K Report, Material Agreement (Dec 18, 2014)

Filed December 18, 2014For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) filed an 8-K on December 18, 2014, to report a significant amendment and restatement of its credit agreement. The key change involves restructuring its debt facilities, specifically increasing its revolving credit commitments and extending their maturity. This strategic move aims to enhance financial flexibility and provide ample liquidity for the company's operations and future growth. Investors should note the increase in total credit availability and the extended maturity of the revolving credit facility, suggesting a stronger liquidity position. The elimination of subsidiary guarantees on the credit agreement also has implications for its outstanding indentures, leading to the automatic release of those subsidiary guarantees. This financial maneuver is a critical update for understanding FIS's debt structure and its capacity to manage its financial obligations.

Key Highlights

  • 1FIS amended and restated its credit agreement on December 18, 2014, increasing total credit facilities to $4.3 billion.
  • 2Revolving credit commitments were increased from $2.0 billion to $3.0 billion and extended to mature on December 18, 2019.
  • 3Term loans remain at $1.3 billion with no change in maturity date (March 30, 2017).
  • 4The amendment eliminates the requirement for FIS's subsidiaries to guarantee its obligations under the credit agreement.
  • 5As a result of the eliminated subsidiary guarantees, related subsidiary guarantees on two specific indentures (dated March 19, 2012, and April 15, 2013) were automatically released.
  • 6Interest rates and commitment fees are based on a ratings-based pricing grid, indicating a variable cost of debt tied to FIS's creditworthiness.

Frequently Asked Questions

The primary purpose was to restructure FIS's debt by increasing its revolving credit commitments to $3.0 billion and extending the maturity date of these commitments to December 18, 2019. This provides the company with enhanced financial flexibility and liquidity.

The elimination of subsidiary guarantees on the credit agreement means that FIS's subsidiaries are no longer obligated to back the debt under this specific credit facility. This also led to the automatic release of subsidiary guarantees on two of FIS's existing indentures.

Following the amendment and restatement, the aggregate amount of term loans and revolving credit commitments under the agreement totals $4.3 billion, comprised of $1.3 billion in term loans and $3.0 billion in revolving credit commitments.

No, only the revolving credit commitments had their maturity extended to December 18, 2019. The term loans of $1.3 billion retain their original maturity date of March 30, 2017.