Summary
GLOBAL PAYMENTS INC (GPN) filed an 8-K on March 1, 2016, primarily detailing amendments to its credit facilities in connection with its proposed acquisition of Heartland Payment Systems, Inc. The company entered into a First Amendment to its Second Amended and Restated Credit Agreements, consolidating and amending existing term and revolving credit facilities. This amendment introduces a new $685 million delayed draw term loan facility and allows for a $1.095 billion Heartland Incremental Term B Loan Facility, bringing the total potential financing to approximately $4.78 billion. These facilities are crucial for funding the acquisition and are set to mature in July 2020.
Key Highlights
- 1Global Payments Inc. amended and restated its existing credit facilities as part of the financing for its proposed acquisition of Heartland Payment Systems.
- 2The Amended Credit Facility Agreement creates a new $685 million delayed draw term loan facility, separate from the acquisition financing.
- 3The total financing package for the Heartland acquisition now contemplates approximately $4.78 billion, including a $1.095 billion Heartland Incremental Term B Loan Facility.
- 4The credit facilities include a $1.75 billion term loan facility and a $1.25 billion revolving credit facility, with the option to increase the revolving facility by up to $250 million.
- 5All credit facilities are set to mature in July 2020.
- 6The agreement outlines variable interest rates and commitment fees based on the Company's leverage ratio, with distinct terms pre- and post-acquisition closing.
- 7Customary affirmative and restrictive covenants, including financial covenants based on leverage and fixed charge coverage ratios, are included.
Frequently Asked Questions
This filing announces the amendment and restatement of Global Payments' credit facilities. This is a crucial step in securing the necessary financing for the previously announced acquisition of Heartland Payment Systems, Inc.
The financing package contemplated by the Amended Credit Facility Agreement allows for a total of approximately $4.78 billion. This includes a Heartland Incremental Term B Loan Facility of about $1.095 billion, which is part of the acquisition funding, along with existing and newly established credit facilities.
The Amended Credit Facility Agreement includes a $1.75 billion term loan facility, a $1.25 billion revolving credit facility (with an option to increase by $250 million), and a new $685 million delayed draw term loan facility. Additionally, there's a $1.095 billion Heartland Incremental Term B Loan Facility specifically for the acquisition.
The Term Loan Facility and the Delayed Draw Term Loan Facility, as well as the Revolving Credit Facility, all mature in July 2020.