8-KMaterial AgreementsFinancial EventsExhibits & Filings

FISERV INC 8-K Report, Material Agreement (Aug 2, 2012)

Filed August 2, 2012For Securities:FISV

Summary

Fiserv, Inc. (FISV) filed an 8-K on August 2, 2012, to report the execution of an Amended and Restated Credit Agreement on August 1, 2012. This agreement significantly enhances the company's financial flexibility by amending and restating its existing $1 billion revolving credit facility to provide a new $2 billion facility, with an option to increase it by an additional $750 million under certain conditions. This increased capacity is intended for general corporate purposes, signaling potential investments or operational needs. The new credit facility matures on August 1, 2017, and is currently undrawn, with only a small amount ($12.5 million) utilized for letters of credit. Key terms include covenants related to debt-to-EBITDA and interest coverage ratios, which are standard for such agreements but important for monitoring the company's financial health. While the borrowings are unsecured, certain domestic subsidiaries provide guarantees, and the agreement includes customary events of default.

Key Highlights

  • 1Fiserv entered into an Amended and Restated Credit Agreement on August 1, 2012.
  • 2The credit facility was increased from $1 billion to $2 billion, with an option for a further $750 million increase.
  • 3The facility matures on August 1, 2017.
  • 4The increased credit line is designated for general corporate purposes.
  • 5As of August 1, 2012, no amounts were drawn under the new facility, with only $12.5 million used for letters of credit.
  • 6The agreement includes financial covenants requiring the company to maintain specific debt-to-EBITDA and interest coverage ratios.
  • 7Borrowings are unsecured, but guaranteed by certain material domestic subsidiaries.

Frequently Asked Questions

This 8-K filing announces that Fiserv, Inc. has entered into an Amended and Restated Credit Agreement, which significantly increases their revolving credit facility from $1 billion to $2 billion.

The initial maximum aggregate amount available under the new revolving credit facility is $2 billion, with the potential to increase by up to $750 million. The facility matures on August 1, 2017.

The company intends to use the amended and restated revolving credit facility for general corporate purposes.

As of August 1, 2012, no amounts were drawn under the new revolving credit facility. Approximately $12.5 million was utilized for letters of credit.

The agreement requires Fiserv to limit its consolidated indebtedness to no more than three and one-half times its consolidated EBITDA and to maintain EBITDA of at least three times its consolidated interest expense, calculated over a four-fiscal quarter period.