Fidelity National adjusts distribution date for Lender Processing Services shares

By Lisa Kerner

Charlotte, N.C., June 20 - Fidelity National Information Services, Inc.'s board of directors changed the distribution date for shares of its subsidiary, Lender Processing Services, Inc., to July 2 from July 1.

The ex-distribution date will be July 3, and the record date for the distribution remains June 24, a Fidelity National news release said.

Fidelity National shareholders as of June 24 who subsequently sell their shares of Fidelity National common stock through July 2 will also be selling their rights to receive the distribution of Lender Processing Services common stock, according to the release.

The distribution date change was made to ensure the timely completion of the distribution and related financing arrangements, the company said.

Fidelity National also announced that the Securities and Exchange Commission declared effective the registration statement on form 10 of Lender Processing Services.

The form 10 reflects the terms of Lender Processing Services' new financing arrangements, which are expected to become effective when it is spun off from Fidelity National.

Financing consists of $375 million of 8 1/8% senior notes due 2016 and a senior secured credit facility comprised of a $700 million five-year term loan A, a $510 million six-year term loan B and a $140 million revolving credit facility, each initially bearing interest at a floating rate equal to Libor plus 250 basis points, it was stated in the release.

As reported in March, Fidelity National planned to contribute all of its interest in the assets, liabilities, businesses and employees related to the operations of its lender processing services operations as of the date of the spinoff to its newly formed subsidiary, Lender Processing Services.

In exchange, Fidelity National will receive additional shares of common stock of Lender Processing Services and up to $1.6 billion in new Lender Processing Services debt obligations, a prior SEC filing noted.

Once its contribution is complete, Fidelity National expects to distribute all the shares of Lender Processing Services to its shareholders and exchange the new Lender Processing Services debt obligations for an equal principal amount of its own existing debt.

Fidelity National, located in Jacksonville, Fla., provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products.

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