Fidelity National Information increases term loan B to $1.5 billion

By Sara Rosenberg

New York, July 8 - Fidelity National Information Services Inc. upsized its six-year term loan B (Ba1/BBB-/BB+) to $1.5 billion from $1.4 billion and lowered pricing to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount firmed at 99, the low end of the initial 98½ to 99 guidance, the source said.

The 1.5% Libor floor was left unchanged.

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, and to refinance an existing term loan B.

Other funding for the stock repurchase will come from $1.1 billion of senior notes, which was downsized from $1.2 billion in connection with the term loan upsizing.

Also, the company recently completed an amendment and extension of its pro rata debt, 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.

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

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