Fidelity National units amend credit facilities to decrease revolver, amend term loan pricing

By Marisa Wong

Morgantown, W.Va., March 2 – Fidelity National Financial, Inc.’s non-wholly owned subsidiary, Fidelity Newport Holdings, LLC, and Fidelity Newport’s wholly owned subsidiary, ABRH, LLC, entered into an amendment to their credit agreement dated Aug. 19, 2014 with Wells Fargo Bank, NA as administrative agent and a lender, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, effective as of Feb. 27, the revolving credit facility was reduced to $60 million from $100 million, and the letter-of-credit sublimit was reduced to $20 million from $40 million.

The amendment also removed a provision that allowed ABRH to enter into up to $250 million of incremental loans.

In addition, the amendment modified the financial covenants relating to leverage ratios to be less restrictive.

Another Fidelity National non-wholly owned subsidiary, Black Knight InfoServ, LLC, also entered into a credit agreement amendment on Feb. 27. Black Knight amended its credit agreement dated May 27, 2015 with JPMorgan Chase Bank, NA as administrative agent.

Black Knight’s amended term loan B now bears interest at Libor plus 225 basis points, subject to a 0.75% Libor floor.

In addition, the amendment permits a previously announced tax-free distribution. Fidelity National intends to distribute all 83.3 million shares of Black Knight Financial Services, Inc. common stock that it currently owns to holders of FNF Group common stock.

Fidelity is a Jacksonville, Fla.-based provider of title insurance, mortgage and diversified services.

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