8-KMaterial AgreementsFinancial EventsOther Events+1

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (May 16, 2025)

Filed May 16, 2025For Securities:GPN

Summary

Global Payments Inc. (GPN) has announced the entry into a new $7.25 billion revolving credit facility, which replaces its prior credit agreement. This new facility includes an initial $5.75 billion available, with an additional $1.5 billion earmarked for the previously announced acquisition of Worldpay Holdco, LLC. The credit facility can be further expanded up to $7.5 billion and matures five years from the closing date, with options for two one-year extensions. This move enhances the company's liquidity and financial flexibility, particularly in light of the significant Worldpay acquisition. In conjunction with this new facility, GPN has reduced its commitments under a separate bridge loan facility from $7.7 billion to $6.2 billion. The new revolving credit agreement features customary covenants, including a net leverage ratio financial covenant, and offers flexible borrowing options in various currencies with interest rates tied to SOFR or base rates plus an applicable margin. This refinancing and facility enhancement signals a strategic step to support ongoing operations and strategic growth initiatives, primarily the integration of Worldpay.

Key Highlights

  • 1Entered into a new $7.25 billion unsecured revolving credit facility, replacing the prior credit agreement.
  • 2The new facility has an initial availability of $5.75 billion, with an additional $1.5 billion available upon the closing of the Worldpay acquisition.
  • 3The company has the option to increase the total commitments under the facility to up to $7.5 billion.
  • 4The revolving credit facility matures five years from the closing date with provisions for two one-year extensions.
  • 5Interest rates will be based on SOFR or alternative rates plus an applicable margin ranging from 1.000% to 1.750%, dependent on credit rating.
  • 6The new agreement includes customary affirmative and restrictive covenants, including a financial covenant based on the Company’s net leverage ratio.
  • 7Reduced commitments under the previously disclosed $7.7 billion bridge loan facility to $6.2 billion.

Frequently Asked Questions

The primary purpose of the new revolving credit facility is to provide Global Payments Inc. with enhanced financial flexibility and liquidity. It will support ongoing operations and strategic initiatives, most notably the previously announced acquisition of Worldpay Holdco, LLC.

The new revolving credit facility provides for up to $7.25 billion in commitments, with the potential to increase to an aggregate amount not to exceed $7.5 billion.

The new revolving credit facility matures on the fifth anniversary of the Closing Date. It also includes provisions for up to two one-year maturity extensions at the company's option.

Upon the effectiveness of the new revolving credit agreement, Global Payments Inc. reduced the commitments related to its previously announced $7.7 billion senior unsecured bridge loan facility to $6.2 billion, indicating a shift in funding strategy.