Fidelity National to launch $1.4 billion term loan B on Wednesday

By Sara Rosenberg

New York, June 28 - Fidelity National Information Services Inc. is scheduled to hold a call at 1 p.m. ET on Wednesday to launch its proposed $1.4 billion six-year term loan B, according to a market source.

JPMorgan and Bank of America are the lead banks on the deal.

Proceeds will be used to help fund the company's recapitalization plan, under which it will repurchase up to $2.5 billion of its common stock in a modified Dutch auction tender offer.

Fidelity National had previously said that it would get $2.5 billion of additional term loans and long-term bonds to fund the plan.

Also, earlier this month, the company launched an amendment and extension of its term loan A and revolving credit facility, requesting to push out the maturity on the tranches to July 2014, with pricing on the extended debt set at Libor plus 250 basis points.

As of March 31, the company had $1.838 billion of term loan A debt priced at Libor plus 75 bps and around $339 million drawn under its revolver - with $555 million of unused capacity - priced at Libor plus 60 bps, according to filings with the Securities and Exchange Commission. Both the term loan A and the revolver are set to mature on Jan. 18, 2012.

Lenders were being offered a 50 bps extension fee and a 100 bps fee for new commitments.

In addition, the amendment sought permission to incur up to $3.4 billion of new term loan debt and unsecured notes.

Fidelity National is a Jacksonville, Fla.-based provider of financial institution core processing and card-issuer and transaction-processing services.

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