Summary
Fidelity National Information Services, Inc. (FIS) filed an 8-K on June 29, 2017, reporting the entry into a material definitive agreement concerning the issuance and sale of new senior notes. The company has secured €1 billion in Euro-denominated notes (0.400% due 2021 and 1.100% due 2024) and £300 million in Sterling-denominated notes (1.700% due 2022). This move indicates FIS's strategy to manage its capital structure, potentially to fund operations, acquisitions, or refinance existing debt. Investors should note the aggregate principal amount and the specific coupon rates and maturity dates of these new debt issuances.
Key Highlights
- 1FIS entered into an Underwriting Agreement on June 26, 2017, for the issuance of new senior notes.
- 2The company is issuing €500,000,000 of 0.400% Senior Notes due 2021.
- 3FIS is also issuing €500,000,000 of 1.100% Senior Notes due 2024.
- 4Additionally, £300,000,000 of 1.700% Senior Notes due 2022 are being issued.
- 5These issuances total €1 billion and £300 million in new debt.
- 6The notes are being issued under an existing Registration Statement on Form S-3ASR.
- 7The filing includes the Underwriting Agreement as an exhibit.
Frequently Asked Questions
While the 8-K filing does not explicitly state the purpose, such debt issuances are typically used by companies to fund general corporate purposes, which can include acquisitions, capital expenditures, refinancing existing debt, or working capital needs.
FIS is issuing €500,000,000 of 0.400% Senior Notes due 2021, €500,000,000 of 1.100% Senior Notes due 2024, and £300,000,000 of 1.700% Senior Notes due 2022.
The issuance of new debt will increase FIS's total debt and consequently its financial leverage. Investors should refer to subsequent financial statements and ratio calculations (like the 'Ratio of Earnings to Fixed Charges' included as an exhibit) to assess the impact on the company's financial risk profile.
Companies often enter into agreements days before filing a report with the SEC. The 8-K is required to be filed within four business days of the occurrence of a material event, such as entering into a significant definitive agreement like an underwriting agreement for a debt issuance.