Global Payments (NYSE:GPN), a leading worldwide provider of electronic transaction processing solutions, announced today the closing of a five-year, $600 million revolving credit agreement with a syndicate of financial institutions.
The revolver agreement expires in December 2015 and carries a short-term variable interest rate plus a leverage-based margin. In addition, the agreement allows the company to expand the facility size to $750 million by requesting additional commitments from existing or new lenders.
The revolver agreement replaces Global's existing $350 million revolver agreement that expires in November 2011. The company intends to use the credit facility to support strategic growth initiatives and general corporate purposes.
Global Payments' Executive Vice President and Chief Financial Officer, David E. Mangum, said, "We are pleased to expand the size of our credit facility while taking advantage of the strength in the capital markets to complete the financing. We appreciate the strong support of our bank partners, which affords us the opportunity to maintain financial flexibility and pursue our strategic objectives."