Fidelity National talks $1.4 billion term B at Libor plus 400 bps

By Sara Rosenberg

New York, June 29 - Fidelity National Information Services Inc. is talking its $1.4 billion six-year term loan B at Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 981/2, according to a market source.

JPMorgan and Bank of America are the lead banks on the deal that is scheduled to launch with a conference call at 1 p.m. ET on Wednesday.

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, and to refinance an existing term loan B.

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.

The company announced on Tuesday that the amendment and extension has been completed, with $2 billion of term loan A and $933 million of revolver commitments now expiring in July 2014. The amendment provided $560 million of incremental term loan A and about $140 million of additional revolver availability.

Proceeds from the incremental term loan A will help with the share repurchase and the term loan B refinancing.

The company still has $397 million of term loan A and $103 million of revolver capacity maturing in January 2012.

Lenders were 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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