Mastercard secures $4.5 billion five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., Nov. 15 – Mastercard Inc. entered into a committed $4.5 billion revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which matures Nov. 15, 2023, amends and restates the company’s prior $3.75 billion credit facility set to mature on Oct. 19, 2022.

Pricing will be Libor plus a margin based on the long-term issuer rating. The margin was not disclosed in the filing.

Borrowings are available in dollars and/or euros for general corporate purposes.

A financial covenant requires the company to maintain a maximum consolidated leverage ratio of not greater than 3.75 to 1, with a step-up to 4.25 to 1 during any fiscal quarter and for the two immediately succeeding fiscal quarters following an acquisition for which the total consideration paid exceeds $300 million.

The company may prepay, terminate or reduce the commitments under the credit facility at any time without penalty in a minimum amount of $10 million.

Citibank, NA and JPMorgan Chase Bank, NA are joint lead arrangers and global coordinators, and Bank of China, New York Branch, Deutsche Bank Securities Inc. and U.S. Bank NA are joint lead arrangers and regional coordinators. Barclays Bank plc, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Industrial and Commercial Bank of China Ltd., New York Branch, Lloyds Bank Corporate Markets, Merrill Lynch, Pierce, Fenner & Smith Inc., Mizuho Bank, Ltd., MUFG Bank, Ltd, NatWest Markets plc, Santander Bank, NA and Societe Generale are joint lead arrangers and documentation agents.

Citibank is managing administrative agent, and JPMorgan is administrative agent.

MasterCard is a Purchase, N.Y., global payment solutions company.

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