8-KMaterial AgreementsFinancial EventsOther Events+1

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Aug 22, 2022)

Filed August 22, 2022For Securities:GPN

Summary

This 8-K filing by Global Payments Inc. (GPN) on August 22, 2022, details the successful completion of a significant senior notes offering totaling $2.5 billion. The offering consists of notes due in 2027, 2029, 2032, and 2052, with varying interest rates ranging from 4.950% to 5.950%. These funds are strategically earmarked for multiple purposes, including refinancing existing debt, financing the pending acquisition of EVO Payments, Inc. (EVO), and for general corporate purposes. Furthermore, the filing announces the establishment of a new $5.75 billion revolving credit facility, which replaces previous credit agreements. This new facility offers financial flexibility and replaces a previously committed bridge loan facility that has now been fully terminated. The overall transactions indicate proactive capital management by Global Payments Inc. to support its growth strategy and operational needs.

Key Highlights

  • 1Global Payments Inc. successfully closed a $2.5 billion senior notes offering across four series with maturities in 2027, 2029, 2032, and 2052.
  • 2The proceeds from the senior notes offering will be used to refinance existing debt, fund the EVO Payments acquisition, and for general corporate purposes.
  • 3A new $5.75 billion revolving credit facility was established, replacing prior credit agreements and providing enhanced liquidity.
  • 4The previously committed bridge loan facility of up to $4.325 billion has been fully terminated following the closing of the senior notes offering and the revolving credit facility.
  • 5The notes are unsecured and unsubordinated, ranking equally with other unsecured and unsubordinated indebtedness of the company.
  • 6The company has the option to redeem the notes under specific conditions, including a 'Change of Control Repurchase Event' or if the EVO acquisition is not consummated by a specified date.
  • 7The new revolving credit facility has a maturity of five years from the closing date and offers flexible borrowing options in various currencies.

Frequently Asked Questions

Global Payments Inc. raised a total of $2.5 billion from the public offering of its senior notes. This includes $500 million in 4.950% Senior Notes due 2027, $500 million in 5.300% Senior Notes due 2029, $750 million in 5.400% Senior Notes due 2032, and $750 million in 5.950% Senior Notes due 2052. Interest is payable semi-annually.

The net proceeds are intended for several strategic uses: refinancing certain existing indebtedness (including borrowings under the revolving credit facility), making cash payments in connection with the EVO Acquisition, refinancing certain outstanding indebtedness of EVO related to the acquisition, paying transaction fees and expenses for the EVO Acquisition, and for general corporate purposes.

The establishment of a $5.75 billion revolving credit facility provides Global Payments Inc. with significant financial flexibility and liquidity. It replaces older credit agreements and matures five years from the closing date. This facility will be used for general corporate purposes, including supporting the company's ongoing operations and strategic initiatives.

The bridge loan facility, initially committed at up to $4.325 billion, has been reduced in stages and was fully terminated upon the closing of the senior notes offering and the revolving credit facility. This indicates that the company has secured its financing needs through the new debt issuance and credit facility, making the bridge loan unnecessary.