Fiserv gets $900 million five-year term loan, extends revolver to 2018

By Angela McDaniels

Tacoma, Wash., Oct. 29 - Fiserv, Inc. arranged a $900 million unsecured term loan on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The term loan matures Oct. 25, 2018.

The interest rate is Libor plus 100 basis points to 175 bps, depending on the company's ratings.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Bank of Tokyo-Mitsubishi UFJ, Ltd., SunTrust Robinson Humphrey, Inc., U.S. Bank, NA, Wells Fargo Securities LLC and PNC Capital Markets LLC are the bookrunners and lead arrangers. JPMorgan Chase Bank, NA is the administrative agent.

The term loan proceeds were used to repay outstanding borrowings under the company's revolving credit facility.

The company must repay the term loan in principal installments of $90 million in December of each year.

Under the terms of the loan, the company must limit its consolidated debt to no more than 3.5 times its consolidated net EBITDA, non-cash charges and expenses and certain other adjustments and maintain EBITDA of at least 3 times its consolidated interest expense.

Subject to some exceptions, all material domestic subsidiaries of the company guarantee the term loan.

Revolver amendment

The company also amended its revolving credit facility to conform some of its terms to those in the term loan agreement and to extend its maturity to Oct. 25, 2018.

The company plans to continue to use the proceeds of the revolver for general corporate purposes.

Brookfield, Wis.-based Fiserv provides financial services technology.

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