8-KMaterial AgreementsFinancial EventsExhibits & Filings

Fidelity National Information Services, Inc. 8-K Report, Material Agreement (Sep 3, 2015)

Filed September 3, 2015For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) filed an 8-K on September 3, 2015, reporting the execution of a $1.50 billion unsecured Term Loan Credit Agreement, dated September 1, 2015. This facility is primarily intended to fund a portion of the acquisition of SunGard, along with associated costs and general corporate purposes. The loan matures in three years and allows for potential additional draws to refinance SunGard notes if they remain outstanding post-acquisition. The terms include floating interest rates based on either the eurocurrency rate or a base rate, with margins adjusted based on FIS's credit rating. The agreement also incorporates standard affirmative, negative, and financial covenants, such as limits on liens and subsidiary debt, and minimum interest coverage/maximum leverage ratios.

Key Highlights

  • 1FIS entered into a $1.50 billion unsecured Term Loan Credit Agreement on September 1, 2015.
  • 2The primary purpose of the loan is to fund part of the SunGard acquisition consideration and related expenses.
  • 3The facility has a three-year maturity date from the initial funding.
  • 4The agreement allows for a potential second drawing to refinance SunGard notes if necessary.
  • 5Interest rates are floating, based on either the eurocurrency rate or a base rate, with margins tied to FIS's credit rating.
  • 6The Credit Agreement includes customary financial covenants, such as interest coverage and leverage ratios.
  • 7The loan is unsecured, meaning there is no specific collateral backing the debt.

Frequently Asked Questions

The new credit facility is for a committed $1.50 billion and is primarily intended to fund a portion of the acquisition of SunGard, along with related costs and general corporate purposes. There's also an option for an additional drawing to repay SunGard notes if they remain outstanding after the acquisition closes.

The agreement is for a $1.50 billion unsecured facility maturing in three years. Interest rates will float, with options for either a eurocurrency rate or a base rate, plus an applicable margin that can adjust based on FIS's credit rating. The loan does not require principal repayment until maturity and allows for voluntary prepayments without penalty.

Yes, the Credit Agreement includes customary affirmative, negative, and financial covenants. These typically involve limitations on creating liens, incurring subsidiary debt, restrictions on investments and dispositions, limits on dividends and restricted payments, and maintaining a minimum interest coverage ratio and a maximum leverage ratio.

The SunGard Acquisition is a material transaction for FIS, and the new credit facility is being used to finance a significant part of its cost. The filing also notes that SunGard stockholders will receive information regarding the proposed transaction, including a consent solicitation statement/prospectus.