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Fidelity National Information Services, Inc. 8-K Report, Material Agreement (Mar 3, 2023)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed March 3, 2023
Period End
February 28, 2023
Security
FIS
In the record · 2016–202610-K1110-Q338-K168

FIS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 168 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’17Jul ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed March 3, 2023. Cited figures are marked; the original filing is the authoritative source.

Fidelity National Information Services, Inc. (FIS) announced on March 3, 2023, the execution of a new $2 billiona revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, and other lenders.

This facility, effective February 28, 2023, will mature on December 15, 2023, and is intended to support ongoing working capital needs and general corporate purposes, including backing its commercial paper program and potentially repaying existing debt. The credit agreement is unsecured, providing flexibility for FIS.

However, it includes customary covenants that will require the company to maintain specific leverage and interest coverage ratios. Investors should note the short-term nature of this facility, expiring in December 2023, which may indicate a strategic focus on short-term liquidity management or a bridge to other financing activities.

02—Key points

Key Highlights

  1. FIS entered into a new $2 billion revolving credit facility.
  2. The facility is unsecured, offering flexibility.
  3. Proceeds will be used for working capital, general corporate purposes, commercial paper backstop, and potential debt repayment.
  4. The credit agreement includes leverage and interest coverage ratio covenants.
  5. The lenders' commitments expire on December 15, 2023, with all borrowings maturing on the same date.
  6. JPMorgan Chase Bank, N.A. is the administrative agent.

03—Questions

Frequently Asked Questions

  1. What is the purpose of the new revolving credit facility?

    The $2 billion revolving credit facility is intended to provide FIS with funding for ongoing working capital needs, general corporate purposes, to backstop its commercial paper program, and for the repayment of certain existing debt of the company and its subsidiaries.

  2. What are the key terms of the new credit agreement?

    The credit agreement provides a $2 billion revolving line of credit that matures on December 15, 2023. Borrowings will accrue interest at either the Adjusted Term SOFR Rate plus a margin or the Base Rate plus a margin, as defined in the agreement. Importantly, the obligations under the agreement are unsecured.

  3. What are the financial obligations or restrictions associated with this credit facility?

    The credit agreement includes customary covenants that restrict the incurrence of indebtedness and certain restricted payments. Additionally, FIS must comply with a leverage ratio and an interest coverage ratio during each testing period.

  4. Why is the credit facility set to expire in December 2023?

    The short-term nature of the facility, expiring in December 2023, suggests that FIS may be using it for immediate liquidity needs, as a bridge to longer-term financing, or as a flexible tool to manage its short-term capital structure. Investors should monitor future filings for any extensions or replacement financing.

04—Continue

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