Global Payments closes on $850 million financing agreement
01 October 2012 | 1702 views | 0
Source: Global Payments
Global Payments Inc. (GPN), a leading worldwide provider of electronic transaction processing solutions, announced today the closing of a new five-year senior unsecured term loan facility of $700 million and a $150 million increase to its existing $600 million senior unsecured revolving credit facility arranged by Bank of America Merrill Lynch, PNC Capital Markets and Regions Capital Markets.
The term loan facility expires in September 2017, while the revolver maturity is unchanged at December 2015. Both agreements carry a short-term variable interest rate plus a leverage-based margin. The company intends to use the funds to support strategic growth initiatives, including acquisitions, ongoing share repurchases and repaying a portion of the company's existing debt.
Global Payments' Senior Executive Vice President and Chief Financial Officer David E. Mangum said, "We are pleased with the expanded financing arrangements and appreciate the strong support of our bank partners. The new financing greatly increases our capacity and provides us with additional flexibility as we pursue our strategic growth and capital deployment objectives."