8-KMaterial AgreementsFinancial Events

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Mar 20, 2018)

Filed March 20, 2018For Securities:GPN

Summary

Global Payments Inc. (GPN) announced a significant amendment to its credit agreement on March 20, 2018, through the First Refinancing Facility Amendment. This amendment primarily focuses on reducing the interest rates associated with its Term B-2 Loans. Specifically, the interest rate for Eurocurrency Loans under Term B-2 will decrease by 25 basis points to a base rate plus 1.75%, and the rate for Base Rate Loans under Term B-2 will also decrease by 25 basis points to a base rate plus 0.75%.

Key Highlights

  • 1Global Payments Inc. entered into a First Refinancing Facility Amendment to its Second Amended and Restated Credit Agreement.
  • 2The amendment, dated March 20, 2018, lowers interest rates on Term B-2 Loans.
  • 3Interest rates for Eurocurrency Loans under Term B-2 are reduced by 25 basis points to Base Rate + 1.75%.
  • 4Interest rates for Base Rate Loans under Term B-2 are reduced by 25 basis points to Base Rate + 0.75%.
  • 5This refinancing indicates a favorable credit environment for the company or improved credit standing.
  • 6The reduction in borrowing costs is expected to positively impact the company's net interest expense and profitability.

Frequently Asked Questions

The filing announces a material definitive agreement, specifically the First Refinancing Facility Amendment to Global Payments Inc.'s credit agreement. The primary goal of this amendment is to reduce the interest rates on the company's Term B-2 Loans.

The reduction of 25 basis points on Term B-2 Loans will lower the company's borrowing costs. This is generally positive for profitability as it reduces net interest expense, potentially leading to higher earnings per share.

The amendment specifically affects the Term B-2 Loans. It reduces the interest rates for both Eurocurrency Loans and Base Rate Loans under the Term B-2 facility. The filing also references the definitions of these loan types within the Credit Agreement.

More comprehensive details regarding the Refinancing Amendment and the amended Credit Facility will be included in Global Payments Inc.'s Quarterly Report on Form 10-Q for the period ending March 31, 2018.