Summary
Fidelity National Information Services, Inc. (FIS) announced on November 25, 2019, that it entered into an Underwriting Agreement to issue and sell a significant amount of senior notes denominated in both Euros and British Pounds. This move indicates proactive capital management and potentially a strategy to diversify funding sources or refinance existing debt. The issuance includes €1 billion of 0.125% Senior Notes due 2022, €625 million of 0.625% Senior Notes due 2025, €625 million of 1.000% Senior Notes due 2028, and £300 million of 2.250% Senior Notes due 2029. This offering, made under FIS's existing S-3 registration statement, is structured to take advantage of prevailing market conditions for fixed-income securities. The low coupon rates on the Euro-denominated notes, particularly the 2022 and 2025 maturities, suggest favorable borrowing costs for FIS. Investors should note the potential implications for the company's leverage ratios and interest expense, although the specific use of proceeds is not detailed in this filing. The closing of the offering is expected to occur on December 3, 2019.
Key Highlights
- 1FIS entered into an Underwriting Agreement on November 21, 2019, for the issuance of senior notes.
- 2The total issuance comprises €1 billion and €625 million in Euro-denominated notes across three different maturities (2022, 2025, 2028).
- 3FIS will also issue £300 million in British Pound-denominated senior notes due 2029.
- 4The notes carry relatively low interest rates: 0.125% for 2022, 0.625% for 2025, 1.000% for 2028, and 2.250% for 2029.
- 5The offering is being conducted under FIS's effective Form S-3 registration statement filed on July 31, 2019.
- 6The closing of the offering is anticipated on December 3, 2019, subject to customary conditions.
- 7This filing includes the Underwriting Agreement as an exhibit.