8-KOther Events

Fidelity National Information Services, Inc. 8-K Report, Corporate Update (Dec 9, 2019)

Filed December 9, 2019For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) announced the early settlement of its "Maximum Tender Offer" on December 9, 2019. The company repurchased a significant portion of its outstanding debt, totaling approximately $811.97 million in principal amount across three series of senior notes. This proactive debt management reflects a strategic move by FIS to optimize its capital structure and potentially reduce future interest expenses. The tender offer was fully subscribed as of the early tender date, December 5, 2019. This means that any notes tendered after this date will not be accepted for purchase, underscoring the market's strong participation and the company's commitment to its repurchase program. The total cost of this early settlement, including accrued interest and an early tender payment, amounted to approximately $971.91 million.

Key Highlights

  • 1FIS completed the early settlement of its debt tender offer, repurchasing up to $811,972,000 in aggregate principal amount of senior notes.
  • 2The tender offer was fully subscribed as of the early tender date (December 5, 2019), with no further tenders expected to be accepted.
  • 3FIS repurchased substantial amounts of its 5.000% Senior Notes due 2025, 4.750% Senior Notes due 2048, and 4.500% Senior Notes due 2046.
  • 4Following the repurchase, the outstanding principal amounts for these notes have been reduced, impacting the company's debt profile.
  • 5The total cash outlay for the accepted tenders, including accrued interest and an early tender premium, was approximately $971.91 million.
  • 6This action demonstrates FIS's active management of its balance sheet and debt obligations.
  • 7The original tender offer was set to expire on December 19, 2019, unless extended or terminated.

Frequently Asked Questions

The purpose of the Maximum Tender Offer was for FIS to repurchase a portion of its outstanding debt securities. This is a common strategy to manage its capital structure, potentially reduce interest expenses, and optimize its debt maturity profile.

FIS completed the early settlement of its tender offer, accepting for purchase up to an increased aggregate maximum repurchase amount of $811,972,000 principal amount of its debt securities.

The aggregate purchase price for the debt securities accepted for purchase, including accrued interest and an early tender payment of $30 per $1,000 principal amount, was approximately $971,909,694.01.

This means that the maximum amount FIS intended to repurchase ($811,972,000) was reached by the early tender deadline (December 5, 2019). Consequently, any debt securities tendered after this date will not be accepted for purchase.