Global Payments Inc. (GPN), a worldwide provider of payment technology and software solutions, successfully closed a new senior unsecured $2 billion term loan and an unsecured $3 billion revolving credit facility on July 9, 2019 in connection with its previously announced merger with Total System Services, Inc. (TSYS). The facilities will be available for borrowing on the date the merger becomes effective and are expected to replace Global Payments’ existing secured credit facilities and TSYS’ unsecured revolving credit facility.

According to SEC documents Bank of America served as administrative agent, and a syndicate of financial institutions as lenders and other agents. Under the terms of the facilities, the interest rate margin currently applicable to Global Payments’ existing facilities is expected to be reduced by 12.5 basis points, subject to future adjustments based on a ratings-based pricing grid.

The $3 billion revolving credit facility represents an increase of $1.5 billion over the company’s existing revolver capacity, providing Global Payments with ample capacity to continue to pursue its strategy post-closing of the merger. Further, the new facilities will mature five years following the effective date of the merger. The agreements include certain financial covenants that are customary in investment grade credit facilities.

"We are delighted to announce the execution of our new investment grade credit facilities, creating substantial flexibility to support the needs of the business upon the closing of our merger with TSYS,” stated Cameron Bready, Senior Executive Vice President and Chief Financial Officer. “This is an important milestone in establishing the new capital structure for our combined company and highlights the confidence our bank partners have in the strength of the pro forma business.”