8-KMaterial AgreementsFinancial EventsOther Events+1

Fidelity National Information Services, Inc. 8-K Report, Material Agreement (Sep 24, 2018)

Filed September 24, 2018For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) has announced significant updates to its financing structure through a Form 8-K filing on September 24, 2018. The company has entered into a Seventh Amendment and Restatement of its Credit Agreement, increasing its revolving credit commitments from $3.0 billion to $4.0 billion and extending the maturity date to September 21, 2023. This expanded credit facility is intended for general corporate purposes and can also be used to backstop any notes issued under a newly established commercial paper program. In conjunction with the credit facility amendment, FIS has also established a U.S. commercial paper program allowing for the issuance of up to $4.0 billion in senior, unsecured commercial paper notes with maturities of up to 397 days. Proceeds from these notes will also be used for general corporate purposes. These actions indicate FIS is proactively managing its liquidity and financial flexibility to support ongoing operations and potential future strategic initiatives.

Key Highlights

  • 1FIS has increased its revolving credit commitments by $1.0 billion, bringing the total to $4.0 billion.
  • 2The maturity date for the credit facility has been extended to September 21, 2023.
  • 3A new U.S. commercial paper program has been established with an aggregate amount outstanding of up to $4.0 billion.
  • 4Proceeds from both the credit facility and the commercial paper program are designated for general corporate purposes.
  • 5The credit facility amendment includes leverage ratio covenants, maintaining a maximum of 3.50x with potential step-ups following acquisitions.
  • 6These financing actions provide FIS with enhanced financial flexibility and liquidity.
  • 7The company announced these updates via a press release on September 24, 2018.

Frequently Asked Questions

The primary impact is an increase in FIS's available borrowing capacity under its revolving credit facility by $1.0 billion, bringing the total to $4.0 billion, and an extension of the facility's maturity date to September 21, 2023. This enhances the company's financial flexibility and liquidity.

The new U.S. commercial paper program allows FIS to issue up to $4.0 billion in senior, unsecured commercial paper notes. The proceeds are intended for general corporate purposes, providing another avenue for short-term funding and liquidity management.

The filing indicates that borrowings under the Restated Credit Agreement will be used for general corporate purposes. The maximum leverage ratio remains at 3.50x, with potential step-ups allowed after significant acquisitions. This suggests FIS is maintaining its debt management strategy while increasing its access to capital.

The credit facility is a revolving credit agreement, and the commercial paper notes are described as senior, unsecured. This implies they are not directly backed by specific assets but rely on the overall creditworthiness of FIS.