Fidelity National amends term loan credit agreement leverage covenant

By Tali Rackner

Norfolk, Va., Aug. 11 – Fidelity National Information Services, Inc. entered into a second amendment to its $1.5 billion term loan credit agreement with Bank of America, NA on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment revises the maximum permitted leverage covenant to 4.25 times, stepping down to 4 times on Dec. 31, to 3.75 times on March 31, 2017 and to 3.5 times on Sept. 30, 2017.

The revision is intended be consistent with the company’s $3 billion credit agreement, which was also amended on Wednesday, the filing said.

As previously reported, Fidelity extended its existing $3 billion credit agreement with administrative agent JPMorgan Chase Bank, NA until Aug. 10, 2021.

The maximum permitted leverage remains 4.25 times with step-downs beginning Dec. 31.

The company also said it repaid existing term loans outstanding under its credit agreement with a remaining principal balance of $600 million and a scheduled maturity date of March 30, 2017, using borrowings under the revolving loan.

The loans under the amended agreement continue to be subject to a credit ratings-based pricing grid that is unchanged.

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

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