Global Payments details $2.25 billion five-year term loan, revolver

By Jennifer Chiou

New York, March 5 - Global Payments Inc. gave the specifics on its previously announced five-year senior unsecured $1.25 billion term loan facility and $1 billion revolving credit facility entered into on Feb. 28.

According to an 8-K filing with the Securities and Exchange Commission, the loans bear interest at Libor plus 100 bps to 200 bps, depending on the company's leverage ratio.

As reported, the facilities were arranged by Bank of America, NA, Merrill Lynch, Pierce, Fenner & Smith Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Bank of Tokyo-Mitsubishi UFJ, Ltd. and TD Securities (USA) LLC.

Under the term loan agreement, 27.5% of the loan must be repaid in increasing quarterly installments beginning in May 2015 and ending in November 2018, with the remaining principal balance due in February 2019. There is no prepayment penalty.

Proceeds from the term loan were used to repay the outstanding balance of the company's existing revolver and to repay the outstanding balance of about $600 million on Global Payments' existing term loan. Remaining proceeds will be used to support strategic growth initiatives, including acquisitions and ongoing share repurchases.

There are financial covenants based on the company's leverage and fixed-charge coverage ratios.

Atlanta-based Global Payments provides electronic transaction processing services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.