Summary
Fiserv, Inc. (FISV) announced on March 29, 2006, the execution of a new Credit Agreement, effective March 24, 2006. This agreement establishes a revolving credit facility totaling $900.0 million, replacing the company's previous $700.0 million facility. The primary purpose of this new credit line is for general corporate needs. This move indicates Fiserv's proactive approach to managing its liquidity and funding requirements, providing enhanced financial flexibility. The new credit facility matures in March 2011 and offers the potential to increase availability up to $1.25 billion, subject to certain conditions. As of the agreement date, approximately $335.3 million was drawn, leaving a significant portion available for future use. The unsecured nature of the borrowings and the fluctuating interest rates tied to the company's debt rating are key terms for investors to note.
Key Highlights
- 1Fiserv has entered into a new Credit Agreement establishing a $900 million revolving credit facility, replacing a prior $700 million facility.
- 2The new credit facility matures on March 24, 2011, providing a five-year term.
- 3The company has the option to increase the facility's aggregate amount to $1.25 billion under specific conditions.
- 4As of March 24, 2006, $335.3 million of the new facility was drawn, with the remaining balance available for use.
- 5Borrowings under the Credit Agreement are unsecured.
- 6The agreement includes covenants, such as a limitation on consolidated indebtedness to 3.5 times consolidated net earnings before interest, taxes, depreciation, and amortization.
- 7The Credit Agreement provides for adjustments to fees and interest rates based on Fiserv's long-term debt rating.