8-KMaterial AgreementsFinancial Events

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Oct 24, 2018)

Filed October 24, 2018For Securities:GPN

Summary

Global Payments Inc. (GPN) announced the entry into the Sixth Amendment to its Second Amended and Restated Credit Agreement on October 18, 2018. This amendment introduces a new Term B Loan facility of $500,000,000, designated as the Term Loan B-4 Facility. This brings the company's total financing capacity under the agreement to $6.0 billion. Importantly, the company utilized the proceeds from this new Term Loan B-4 Facility to repay certain outstanding amounts under its revolving credit facility, meaning the aggregate outstanding debt under the Credit Agreement did not change. This strategic move likely aimed at optimizing the company's debt structure or managing its liquidity. The new Term Loan B-4 Facility matures on October 18, 2025, and carries specific interest rate margins based on loan type (Eurocurrency or Base Rate), with detailed definitions for the base rate calculation.

Key Highlights

  • 1Global Payments Inc. entered into the Sixth Amendment to its Second Amended and Restated Credit Agreement.
  • 2A new Term B Loan facility (Term Loan B-4 Facility) of $500,000,000 was added.
  • 3The total financing capacity under the Credit Agreement increased to $6.0 billion.
  • 4Proceeds from the new Term Loan B-4 Facility were used to repay outstanding amounts under the revolving credit facility, keeping aggregate debt unchanged.
  • 5The Term Loan B-4 Facility matures on October 18, 2025.
  • 6Interest rates for the Term Loan B-4 Facility include a 1.75% margin for Eurocurrency Loans and a 0.75% margin for Base Rate Loans, above specified base rates.
  • 7The amended Credit Agreement includes customary financial covenants related to net leverage and interest coverage ratios.

Frequently Asked Questions

This filing announces Global Payments Inc.'s entry into a material definitive agreement, specifically the Sixth Amendment to its Second Amended and Restated Credit Agreement. This amendment pertains to the creation of a new debt facility.

No, the company's aggregate outstanding debt under the Credit Agreement did not change. The proceeds from the new $500,000,000 Term Loan B-4 Facility were used to repay existing outstanding amounts under the revolving credit facility.

The Term Loan B-4 Facility is for $500,000,000 and matures on October 18, 2025. It carries an interest rate of a base rate plus a 1.75% margin for Eurocurrency Loans and a base rate plus a 0.75% margin for Base Rate Loans.

The amended Credit Agreement contains customary affirmative and restrictive covenants, including financial covenants that are based on the Company’s net leverage and interest coverage ratios.