FIS™ (NYSE: FIS), the world’s largest provider of banking and payments technology, today announced the completion of the amendment and extension of its existing credit agreement.
The transaction resulted in the amendment of certain terms and conditions of the credit agreement, including the release of collateral when investment grade credit ratings are attained. The transaction also resulted in the extension of a substantial portion of Term Loan A and revolving loan maturities from 2014 to 2017 and a reduction in borrowing costs. There was no material change to FIS’ total leverage as a result of the amendment.
Following the amendment and extension, the credit facility totals $3.7 billion in the aggregate, including $2.1 billion of Term Loan A and $1.15 billion of revolving loan capacity that will mature in March 2017; $250 million of Term Loan A that will mature in July 2014; and $200 million of Term Loan B that will mature in July 2016.
The Term Loan A and revolving loan capacity maturing in March 2017 are subject to a credit ratings-based pricing grid (LIBOR plus 200 basis points based on the current credit ratings of FIS). The pricing of the Term Loan A maturing in July 2014 and the Term Loan B maturing in July 2016 remain unchanged.
In connection with the amendment and extension of the credit facility and the senior notes offering that closed on March 19, 2012, FIS expects to record a pre-tax charge of approximately $18 million in the first quarter of 2012 related to the early extinguishment of debt and certain fees and expenses related to the refinancing activities.
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC acted as joint lead arrangers of the credit facility.