Summary
This 8-K filing from Global Payments Inc. (GPN) on September 7, 2018, primarily discloses a significant financial transaction related to their acquisition of AdvancedMD. Specifically, the company drew approximately $710 million from its revolving credit facility on August 31, 2018, to finance this acquisition, which was officially completed on September 4, 2018. This action represents a material use of debt to fund a strategic growth initiative. Investors should note that while the acquisition itself was previously announced, this filing confirms the financing mechanism employed. The use of the revolving credit facility indicates the company's access to liquidity and its strategy to leverage debt for strategic acquisitions. The terms of the credit facility, as previously filed, govern this borrowing, providing a degree of transparency into the associated costs and conditions.
Key Highlights
- 1Global Payments Inc. drew approximately $710 million from its revolving credit facility.
- 2The borrowing occurred on August 31, 2018.
- 3The funds were used to finance the acquisition of AdvancedMD.
- 4The acquisition of AdvancedMD was completed on September 4, 2018.
- 5This is a direct financial obligation created under the company's existing credit facility.
- 6The terms of the borrowing are governed by the Credit Agreement filed with the Form 10-Q for the period ended June 30, 2018.