Fidelity National amends credit agreement covenants ahead of merger

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – Fidelity National Information Services, Inc. adjusted some financial covenants under its credit agreement, according to an 8-K filed with the Securities and Exchange Commission.

Friday’s amendment to the agreement, originally dated Jan. 8, 2007 and last amended Dec. 18, 2014, did the following:

• Increased the agreement’s maximum leverage ratio to 4.25x as of the closing date of the company’s pending acquisition of SunGard with a step-down to 3.50x. Any debt raised to fund the acquisition will not be included in calculating the maximum leverage ratio until the SunGard closing or the 35th day after a termination of the Aug. 14 merger plan;

• Specified that revolver borrowings to finance the acquisition shall be subject to limited conditionality customary in acquisition financings; and

• Provide that, under certain circumstances, if SunGard’s notes remain in place after closing of the acquisition, their issuer will provide a springing guaranty of the amended credit agreement that will become effective on the 90th day after closing.

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

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