Business Context and Reporting Period
This Form 8-K filing by Fidelity National Information Services, Inc. (FIS) reports on events occurring on September 21, 2018, with the report dated September 24, 2018. The filing details significant updates to the company's capital structure and liquidity facilities.
Key Financial Metrics and Agreements
- Revolving Credit Facility: Increased from $3.0 billion to $4.0 billion.
- Credit Agreement Term: Extended to September 21, 2023.
- Commercial Paper Program: Established with a maximum aggregate outstanding amount of $4.0 billion.
- Commercial Paper Maturity: Up to 397 days from the date of issue.
- Leverage Ratio: Maximum remains at 3.50x, with potential step-ups to 4.00x or 4.50x following acquisitions of a certain size.
Material Changes Versus Prior Period
The primary material change is the expansion of available liquidity. The company amended its existing credit agreement to increase revolving commitments by $1.0 billion and extended the maturity date. Additionally, FIS established a new Commercial Paper Program, which did not exist in the prior period, providing an additional $4.0 billion in short-term financing capacity.
Outlook, Management Commentary, and Risks
Proceeds from both the amended credit facility and the new Commercial Paper Program are designated for general corporate purposes. Specifically, the credit facility will be used to backstop notes issued under the Commercial Paper Program. The filing notes that the Commercial Paper Notes are unregistered securities and may not be offered or sold in the United States absent registration or an applicable exemption. No specific financial guidance or risk factors beyond standard securities law disclosures were included in this specific report.
Investor Verification Checklist
- Verify the specific terms and covenants of the Seventh Amendment and Restatement Agreement (Exhibit 10.1).
- Confirm the conditions under which the leverage ratio may step up to 4.00x or 4.50x.
- Monitor the actual issuance volume and interest rates of the new Commercial Paper Program.
- Review the press release (Exhibit 99.1) for any additional strategic context regarding the liquidity expansion.