8-KMaterial AgreementsFinancial EventsExhibits & Filings

FISERV INC 8-K Report, Material Agreement (Jun 21, 2022)

Filed June 21, 2022For Securities:FISV

Summary

Fiserv, Inc. (FISV) has entered into a new Credit Agreement, replacing its prior agreement. This new facility provides a senior unsecured multicurrency revolving credit facility with an increased maximum aggregate principal amount of $6.0 billion, maturing on June 16, 2027. Importantly, as of the entry date, no amounts were drawn under this new facility, indicating a strong liquidity position. The agreement allows for borrowings in multiple currencies and offers flexibility for voluntary prepayments and commitment reductions. The new credit facility introduces a slightly relaxed consolidated indebtedness covenant, allowing for up to 3.75 times consolidated EBITDA, compared to the previous 3.5 times limit. This provides Fiserv with some additional flexibility in its leverage. The agreement also includes customary covenants and events of default. The termination of the prior $3.5 billion credit facility, which had a maturity in September 2023, occurred concurrently with the execution of the new agreement.

Key Highlights

  • 1Fiserv entered into a new $6.0 billion senior unsecured multicurrency revolving credit facility, replacing its previous $3.5 billion facility.
  • 2The new credit facility matures on June 16, 2027, providing a longer-term financing option.
  • 3As of June 16, 2022, no funds were drawn under the new credit facility, indicating ample liquidity.
  • 4The maximum consolidated indebtedness covenant has been slightly relaxed to 3.75x EBITDA, from 3.5x previously.
  • 5The new agreement allows for borrowings in USD, EUR, GBP, and other agreed-upon currencies.
  • 6Voluntary prepayments and commitment reductions are permitted generally without fees.
  • 7The prior $3.5 billion credit facility, set to mature in September 2023, was terminated concurrently.

Frequently Asked Questions

The new Credit Agreement provides for a senior unsecured multicurrency revolving credit facility with an initial maximum aggregate principal amount of $6.0 billion.

The new Credit Agreement matures on June 16, 2027.

The primary change in the covenants is the consolidated indebtedness limit, which has been increased to no more than 3.75 times consolidated EBITDA, up from the previous limit of 3.5 times consolidated EBITDA. The prior agreement also had a covenant requiring EBITDA to be at least 3.0 times consolidated interest expense, which is not explicitly mentioned as being carried over in the same form in the new agreement summary.

No, as of June 16, 2022, the effective date of the new Credit Agreement, $0 was drawn under the facility, indicating the company had no immediate need for the borrowed funds and maintained strong liquidity.