Global Payments Inc. Announces Second Amended and Restated Term Loan Agreement and Second Amended and Restated Credit Agreement with Bank of America, N.A
Aug 6 15
On July 31, 2015, Global Payments Inc. and certain wholly owned subsidiaries of the company, as borrowers, entered into a Second Amended and Restated Term Loan Agreement and a Second Amended and Restated Credit Agreement, each with Bank of America, N.A, as administrative agent, and a syndicate of financial institutions, as lenders and other agents. The Term Loan Agreement and the Revolving Credit Facility Agreement amended and restated the Company's prior term loan agreement and revolving credit facility agreement, each dated February 28, 2014. The Term Loan Agreement provides for a five-year senior unsecured $1.75 billion term loan facility, and the Revolving Credit Facility Agreement provides for a senior unsecured $1.25 billion revolving credit facility. The available borrowings under the Revolving Credit Facility may be increased, at the Company's option, by up to an additional $500 million, subject to the Company's receipt of increased or new commitments from lenders and the satisfaction of certain conditions. The Term Loan Agreement and the Revolving Credit Facility Agreement expire in July 2020. Pursuant to the Term Loan Agreement, 27.5% of the Term Loan must be repaid in equal quarterly installments commencing in November 2017 and ending in May 2020, with the remaining principal balance due upon maturity in July 2020; provided, however, that the Term Loan may be prepaid without penalty. Each of the Agreements provides for an interest rate, at the election of the borrowers, of either (i) LIBOR plus a margin ranging from 1.0% to 1.75% or (ii) a base rate plus a margin ranging from 0.0% to 0.75%, in each case depending on the Company's leverage ratio. The base rate is the high of (a) the Federal Funds Effective Rate (as defined in the Agreements) plus 0.50%, (b) the Bank of America prime rate and (c) LIBOR plus 1.0%. Upon the closing of the Term Loan and the Revolving Credit Facility, which occurred on July 31, 2015, the Company repaid the outstanding balance of its previously existing revolving credit facility and the outstanding balance of approximately $1.23 billion on its previously existing term loan. The Company intends to use the remaining proceeds to support strategic capital allocation initiatives, including acquisitions and ongoing share repurchases. The Agreements contain customary affirmative and restrictive covenants, including, among others, financial covenants based on the Company's leverage and fixed charge coverage ratios. Each of the Agreements includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable.
Global Payments Refinances Debt Facilities and Expands Capacity to $3 Billion
Aug 3 15
Global Payments Inc. successfully closed on a new five-year senior unsecured $1.75 billion term loan facility and $1.25 billion revolving credit facility arranged by Bank of America, NA, Merrill Lynch, Pierce, Fenner & Smith Incorporated, PNC Capital Markets LLC, The Bank of Tokyo-Mitsubishi UFJ Ltd. and TD Securities (USA) LLC. The proceeds from the new facilities will be used to repay outstanding balances on the company’s prior revolving credit facility and $1.25 billion term loan. The company intends to use the remaining capacity to support future capital allocation initiatives.
Global Payments Inc. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended May 31, 2015; Provides Earnings Guidance for Fiscal 2016
Jul 28 15
Global Payments Inc. announced consolidated earnings results for the fourth quarter and full year ended May 31, 2015. For the quarter, the company reported revenues of $706,549,000 against $673,977,000 a year ago. Operating income was $103,600,000 against $88,917,000 a year ago. Income before income taxes was $95,268,000 against $81,559,000 a year ago. Net income attributable to company was $65,325,000 or $0.99 per diluted share against $51,625,000 or $0.72 per diluted share a year ago. On adjusted basis, net revenue and cash earnings were $496,258,000, operating income was $137,192,000, income before income taxes was $125,264,000 and net income attributable to company was $84,259,000 or $1.27 per diluted share.
For the full year, the company reported revenues of $2,773,718,000 against $2,554,236,000 a year ago. Operating income was $456,597,000 against $405,499,000 a year ago. Income before income taxes was $417,110,000 against $377,350,000 a year ago. Net income attributable to company was $278,040,000 or $4.12 per diluted share against $245,286,000 or $3.37 per diluted share a year ago. Net cash provided by operating activities was $424,701,000 against $194,098,000 a year ago. Capital expenditures were $92,550,000 against $81,411,000 a year ago. On adjusted basis, net revenue and cash earnings were $1,952,892,000, operating income was $560,007,000, income before income taxes was $516,924,000 and net income attributable to company was $340,057,000 or $5.04 per diluted share.
For fiscal 2016, the company expects annual adjusted net revenue of $2.06 billion to $2.10 billion, or 6% to 8% growth over fiscal 2015 adjusted net revenue. The company also expects annual diluted cash earnings per share of $5.60 to $5.78, representing growth of 11% to 15% over fiscal 2015. Annual fiscal 2016 GAAP revenue is expected to be $2.87 billion to $2.95 billion or 4% to 6% growth over fiscal 2015. The company expects GAAP diluted EPS in the range of $4.53 to $4.71. The effective tax rate is projected to approach 27%. The company anticipates that fiscal 2016 capital expenditures will total approximately $105 million.