Fidelity National Financial new holding company, THC, to get new $500 million credit facility

By Sara Rosenberg

New York, May 17 - Fidelity National Financial Inc.'s proposed new title insurance holding company - THC - plans on getting a new $500 million credit facility to pay a dividend to Fidelity National, according to a company news release.

Furthermore, subject to rating agency review, THC also plans to issue $250 million intercompany note payable to Fidelity National, with terms that will mirror Fidelity National's existing $250 million 7.30% public debentures due August 2011.

Fidelity National is forming the new Jacksonville, Fla.-based company as part of a strategic restructuring plan. Under the terms of the plan, Fidelity National would make a taxable distribution of 17.5% of the shares of the common stock of THC to stockholders, while retaining ownership of the remaining 82.5%. THC would then become a majority-owned, publicly traded subsidiary of Fidelity National.

Completion of the taxable distribution to existing stockholders is subject to a number of conditions, including regulatory approval. This distribution of THC common stock is expected to occur in the third quarter.

Fidelity National, also based in Jacksonville, Fla., is a provider of products and outsourced services and solutions to financial institutions and the real estate industry.

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