Fidelity National gets commitments for $3.2 billion facility

By Sara Rosenberg

New York, Jan. 21 - Fidelity National Information Services Inc. (FIS), a subsidiary of Fidelity Financial Inc. (FNF), has received commitments for a $3.2 billion senior credit facility, according to a company news release.

Bank of America, JP Morgan Chase, Wachovia, Deutsche Bank and Bear Stearns - although not necessarily in that order - are the lead banks on the deal.

Although no date has been picked for the bank meeting, the company does expect to close the deal by the end of February, a company spokesman told Prospect News on Friday.

The facility consists of a $400 million revolving credit facility, a $1 billion term loan A and a $1.8 billion term loan B, with all three tranches expected to price in the Libor plus 200 basis points area, the spokesman said.

Proceeds from the two term loans will be used to help fund the recapitalization of the company. The company entered into a stock purchase agreement in late December under which it would sell an about 25% minority equity interest in its common stock to an investment group led by Thomas H. Lee Partners LP and Texas Pacific Group for a total purchase price of about $500 million.

The revolver is expected to be undrawn at closing.

"The receipt of this funding commitment is integral to our completion of the FIS recapitalization and the payment of the special cash dividend to FNF stockholders," chairman and chief executive officer William P. Foley II said in the release.

"With this funding commitment, we are now one step closer to having the FNF board of directors declare a record date and a payable date for the $10 special cash dividend. We expect that the recapitalization of FIS, the payment of the special cash dividend to FNF stockholders and the closing of the 25% minority equity interest sale in FIS will all occur in late February or early March."

Fidelity National is a Jacksonville, Fla., provider of technology solutions, processing services and information services to the financial services and real estate industries.

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