Fidelity National details pricing for new $1.1 billion term loan

By Marisa Wong

Madison, Wis., July 11 - Fidelity National Financial, Inc. released more details on its new $1.1 billion term loan credit agreement in an 8-K filed Friday with the Securities and Exchange Commission.

Fidelity National entered into the term loan credit agreement on July 11 with Bank of America, NA as administrative agent; Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC, U.S. Bank NA and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners; JPMorgan Chase Bank, NA, U.S. Bank and Wells Fargo Bank, NA as co-syndication agents; and Bank of the West, BMO Harris Bank NA, Citibank, NA, Fifth Third Bank, Regions Bank, Union Bank, NA, PNC Bank NA and RBS Citizens, NA as co-documentation agents.

According to a Thursday press release, the term loan has a maturity date of five years from the funding date, which will be determined by the closing date of Fidelity National's acquisition of Lender Processing Services, Inc.

There will be mandatory quarterly principal repayments of the term loan equal to 0% in the first year after the funding date, 10% in the second year, 15% in the third year, 20% in the fourth year and 20% in the fifth year.

Interest is equal to Libor plus 150 basis points to 200 bps, depending on the company's senior unsecured long-term debt ratings. At the current Moody's and Standard & Poor's ratings of Baa3 and BBB-, respectively, the applicable margin is 175 bps.

Fidelity National will also pay an unused commitment fee of 25 bps on the entire term loan until the earlier of the termination of the term loan commitments or the funding of the term loans.

Concurrent with the closing of the new term loan and also in connection with the acquisition of Lender Processing Services, Fidelity National amended its $800 million senior unsecured revolving credit facility.

The revolver was extended to July 15, 2018 from April 16, 2016.

The company previously said in June that lenders holding $595 million of the facility agreed to extend the maturity date to July 15, 2018.

Borrowings will continue to bear interest at Libor plus 132.5 basis points to 160 bps, the press release noted.

Financial covenants remain essentially the same except that the total debt to total capitalization ratio limit of 35% will increase to 37.5% for a period of one year after the closing of the acquisition.

Fidelity is a Jacksonville, Fla.-based provider of title insurance, mortgage and diversified services. Lender Processing Services, also based in Jacksonville, Fla., is a provider of integrated technology, services and loan performance data and analytics to the mortgage, consumer lending, capital markets and real estate industries.

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