8-KMaterial AgreementsFinancial EventsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Mar 31, 2016)

Filed March 31, 2016For Securities:GPN

Summary

This 8-K filing by Global Payments Inc. (GPN) primarily concerns updates related to the financing for its previously announced acquisition of Heartland Payment Systems, Inc. The company has entered into a Lender Joinder Agreement to its Amended Credit Facility Agreement, adding Bank of the Philippine Islands as a new lender. This addition provides a $50 million delayed draw term loan commitment, increasing the total delayed draw commitments to $735 million. Crucially, this adjustment results in a slight decrease in the anticipated initial aggregate principal balance of the term B loan facility to $1.045 billion, down from $1.095 billion. Global Payments also announced the successful syndication of this $1.045 billion term B loan facility, indicating that the necessary financing for the Heartland acquisition is in place, subject to customary closing conditions. Investors should note that the core terms of the Amended Credit Facility Agreement remain unchanged, and the acquisition is proceeding with secured financing.

Key Highlights

  • 1Global Payments Inc. (GPN) filed an 8-K detailing financing updates for the Heartland acquisition.
  • 2A Lender Joinder Agreement was executed, adding Bank of the Philippine Islands as a new lender.
  • 3A $50 million delayed draw term loan commitment was secured from Bank of the Philippine Islands.
  • 4Total delayed draw term loan commitments under the Amended Credit Facility Agreement increased to $735 million.
  • 5The anticipated initial aggregate principal balance of the term B loan facility for the acquisition was reduced to $1.045 billion.
  • 6The $1.045 billion term B loan facility has been successfully syndicated.
  • 7Financing for the Heartland acquisition is substantially secured, pending customary closing conditions.

Frequently Asked Questions

The main purpose of this filing is to provide an update on the financing arrangements for Global Payments Inc.'s proposed acquisition of Heartland Payment Systems, Inc. Specifically, it details the addition of a new lender and an increase in delayed draw term loan commitments, which slightly adjusts the total financing package for the acquisition.

The addition of Bank of the Philippine Islands as a new lender through a Lender Joinder Agreement contributes a $50 million delayed draw term loan commitment. This increases the total delayed draw commitments to $735 million and leads to a corresponding decrease in the anticipated initial aggregate principal balance of the term B loan facility to $1.045 billion.

Yes, the filing indicates that the $1.045 billion term B loan facility, along with existing commitments, has been successfully syndicated, providing the necessary financing to complete the Heartland acquisition. However, all funding commitments remain subject to the satisfaction of customary closing conditions.

No, the filing explicitly states that the material terms of the Amended Credit Facility Agreement are otherwise unchanged by the Lender Joinder Agreement. The changes primarily relate to the addition of a new lender and the specific allocation of loan amounts within the existing facility structure.