8-KMaterial AgreementsOther EventsExhibits & Filings

Fidelity National Information Services, Inc. 8-K Report, Material Agreement (May 21, 2019)

Filed May 21, 2019For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) reported on May 21, 2019, the successful closing of a significant debt offering, issuing both Euro- and Pounds sterling-denominated senior notes, as well as U.S. dollar-denominated senior notes. This move signifies a substantial capital raise, indicating a strategic financial maneuver likely to support ongoing operations, potential acquisitions, or refinance existing debt. The issuance involved a complex series of notes with varying maturities and interest rates across multiple currencies, underscoring FIS's global reach and financial sophistication. For investors, this filing primarily highlights the company's proactive approach to managing its capital structure and its ability to access capital markets efficiently. The denominations and currencies involved suggest FIS is diversifying its funding sources and potentially hedging against currency fluctuations. While the exact use of proceeds is not detailed in this specific filing, such a large debt issuance is a key event to monitor for its impact on the company's leverage, interest expense, and overall financial flexibility, especially in the context of other strategic initiatives, such as the previously announced merger with Worldpay.

Key Highlights

  • 1FIS successfully closed a dual offering of Euro/Pounds sterling-denominated senior notes and U.S. dollar-denominated senior notes on May 21, 2019.
  • 2The Euro-Sterling notes offering included multiple tranches with varying maturities (2021-2039) and fixed/floating interest rates, denominated in Euros and Pounds Sterling.
  • 3The USD notes offering consisted of $1 billion in aggregate principal amount of 3.750% Senior Notes due 2029.
  • 4The offerings were conducted under previously filed registration statements and underwriting agreements, indicating a well-structured and planned capital raise.
  • 5The filing includes executed supplemental indentures for each series of notes, detailing the terms and conditions of the debt.
  • 6Legal opinions from Willkie Farr & Gallagher LLP and Nelson Mullins Riley & Scarborough LLP regarding the validity of the notes are filed as exhibits.
  • 7The report also references the ongoing merger with Worldpay and provides information on where investors can find relevant documents related to that transaction.

Frequently Asked Questions

This 8-K filing primarily announces the closing of Fidelity National Information Services, Inc.'s (FIS) significant debt offerings, specifically the issuance and sale of Euro/Pounds sterling-denominated senior notes and U.S. dollar-denominated senior notes.

The filing details the issuance of €500 million of Floating Rate Senior Notes due 2021, €500 million of 0.125% Senior Notes due 2021, €1.25 billion of 0.750% Senior Notes due 2023, €1.25 billion of 1.500% Senior Notes due 2027, €1 billion of 2.000% Senior Notes due 2030, €500 million of 2.950% Senior Notes due 2039, £625 million of 2.602% Senior Notes due 2025, and £625 million of 3.360% Senior Notes due 2031, totaling over €5.6 billion. Additionally, $1 billion in U.S. dollar-denominated Senior Notes due 2029 were issued.

While this filing focuses on the debt offerings, it also serves as a reminder to investors about the ongoing merger with Worldpay. It directs readers to other SEC filings, including the Form S-4 registration statement, for important information regarding the proposed transaction, and clarifies where to obtain these documents.

This substantial debt issuance will increase FIS's leverage and interest expense. Investors should monitor how this impacts the company's debt-to-equity ratio, interest coverage ratios, and overall financial flexibility. The diverse currency denominations may also offer some natural hedging benefits for international operations. The specific use of proceeds is not detailed in this 8-K but is likely for general corporate purposes, refinancing existing debt, or funding strategic initiatives like the Worldpay acquisition.