Summary
Global Payments Inc. (GPN) announced on December 7, 2010, the execution of a new, unsecured five-year revolving credit facility totaling $600 million. This facility, set to expire in December 2015, provides flexibility with the option to increase the size to $750 million through additional lender commitments. The credit facility carries a variable interest rate tied to market short-term rates plus a leverage-based margin, and includes standard financial and non-financial covenants. This new credit facility is intended to bolster strategic growth initiatives and fund general corporate purposes. Notably, approximately $150 million of the new facility will be allocated to repay existing term loan debt. In conjunction with this new agreement, Global Payments has terminated its previous U.S. credit facility that was scheduled to mature in November 2011, signaling a proactive approach to managing its debt structure and enhancing its financial flexibility.
Key Highlights
- 1Secured a new $600 million unsecured five-year revolving credit facility expiring December 2015.
- 2Option to increase the facility size to $750 million with additional lender commitments.
- 3Variable interest rate based on market short-term rates plus a leverage-based margin.
- 4Proceeds to support strategic growth initiatives and general corporate purposes.
- 5Approximately $150 million will be used to pay down existing term loan debt.
- 6Terminated the prior U.S. credit facility due to expire November 2011.
- 7The agreement contains customary financial and non-financial covenants.