Summary
Global Payments Inc. (GPN) announced on June 21, 2018, the execution of the Fifth Amendment to its Second Amended and Restated Credit Facility Agreement, dated July 31, 2015. This amendment significantly increases the company's total financing capacity to approximately $5.5 billion across a revolving credit facility and multiple term loan facilities, while noting that the aggregate outstanding debt did not change as a result of this specific amendment. The maturity dates for these facilities generally extend to 2023, providing a stable debt maturity profile.
Key Highlights
- 1Global Payments Inc. entered into a Fifth Amendment to its Credit Facility Agreement on June 19, 2018.
- 2The total financing capacity under the Credit Facilities has been increased to approximately $5.5 billion.
- 3The amendment includes a $1.5 billion revolving credit facility, a $1.5 billion Term Loan A facility, a $1.37 billion Term Loan A-2 facility, and a $1.14 billion Term Loan B-2 facility.
- 4Despite the increased capacity, the company's aggregate outstanding debt under the Amended Credit Facility did not change with this amendment.
- 5Maturity dates for the revolving credit facility and Term Loan A/A-2 facilities are set for January 20, 2023, with Term Loan B-2 maturing on April 22, 2023.
- 6Interest rates on borrowings are variable and dependent on the Company's leverage ratio, with margins ranging from 0.25% to 2.00% for different loan types.
- 7The amendment allows for potential increases in the Credit Facilities of up to $850 million through Permitted Incremental Equivalent Debt.
Frequently Asked Questions
The primary purpose of the Fifth Amendment is to increase the company's total financing capacity under its existing credit facilities to approximately $5.5 billion. This provides Global Payments with greater financial flexibility and access to capital.
No, the filing explicitly states that the company's aggregate outstanding debt under the Amended Credit Facility did not change as a result of this Fifth Amendment. The amendment primarily increased the *available capacity*, not the amount borrowed.
The Revolving Credit Facility, Term Loan A Facility, and Term Loan A-2 Facility are set to mature on January 20, 2023. The Term Loan B-2 Facility has a slightly later maturity date of April 22, 2023.
Interest rates are based on a benchmark rate (either a base rate or Eurocurrency rate) plus a margin. The margin varies depending on the type of loan and the Company's leverage ratio, generally ranging from 0.25% to 2.00%.