Global Payments Prices $1B Senior Notes Offering

Ticker: GPN · Form: 8-K · Filed: 2024-10-30T00:00:00.000Z

Sentiment: neutral

Topics: debt-offering, refinancing, senior-notes

TL;DR

Global Payments just priced a $1B debt offering to pay off older debt maturing in 2025.

AI Summary

Global Payments Inc. announced on October 30, 2024, that it has priced a public offering of $1.0 billion aggregate principal amount of its 5.375% Senior Notes due 2031. The company intends to use the net proceeds from this offering, along with cash on hand, to fund the redemption of its outstanding 4.250% Senior Notes due 2025.

Why It Matters

This offering allows Global Payments to refinance its debt, potentially lowering interest expenses and extending its debt maturity profile.

Risk Assessment

Risk Level: low — The filing details a routine debt offering and refinancing, which is a common corporate finance activity with predictable implications.

Key Numbers

Key Players & Entities

FAQ

What is the aggregate principal amount of the Senior Notes Global Payments Inc. priced?

Global Payments Inc. priced an aggregate principal amount of $1.0 billion of its 5.375% Senior Notes due 2031.

What is the interest rate on the newly issued Senior Notes?

The interest rate on the new 5.375% Senior Notes due 2031 is 5.375% per annum.

What will the proceeds from the Senior Notes offering be used for?

The net proceeds are intended to be used, along with cash on hand, to fund the redemption of the outstanding 4.250% Senior Notes due 2025.

When was the pricing of the Senior Notes offering?

The pricing of the Senior Notes offering was on October 30, 2024.

What is the maturity date of the Senior Notes being redeemed?

The Senior Notes being redeemed are the 4.250% Senior Notes due 2025.

Filing Stats: 1,356 words · 5 min read · ~5 pages · Grade level 13.7 · Accepted 2024-10-30 07:00:53

Key Financial Figures

Filing Documents

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition On October 30, 2024, Global Payments Inc. (the "Company" or "Global Payments") issued a press release announcing its financial results for the quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this "Report") and is incorporated herein by reference. The information being furnished pursuant to Item 2.02 of this Report, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

01. Other Events

Item 8.01. Other Events Sale of AdvancedMD, Inc. On October 30, 2024, the Company announced that it had entered into a Purchase Agreement (the "Agreement") to sell AdvancedMD, Inc., a wholly owned subsidiary of the Company and provider of cloud-based software as a service solutions to small-to-medium sized ambulatory physician practices in the United States ("AMD"), to an affiliate of Francisco Partners Management, L.P. ("FP"). Pursuant to the Agreement and subject to the satisfaction or waiver of customary closing conditions specified therein, the Company will sell AMD to FP for a total purchase price of $1.125 billion. The closing of the transaction is expected to occur in the fourth quarter of 2024, subject to the receipt of required regulatory clearance and other customary closing conditions. Accelerated Share Repurchase Program On October 30, 2024, the Company announced it has entered into an accelerated share repurchase ("ASR") program to repurchase an aggregate of $600 million of the Company's shares of common stock as part of the Company's previously announced, board-approved share repurchase program. Approximately five million shares of the Company's common stock to be repurchased under the ASR will be received by the Company on October 31, 2024. The total number of shares that the Company will repurchase under the ASR will generally be based on the average of the daily volume-weighted average prices of the Company's common stock during the repurchase period, less a discount and subject to adjustments pursuant to the terms of the ASR. Final settlement of the ASR is expected to occur no later than December 31, 2024.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 99.1 Press Release of Global Payments Inc., containing financial information for the quarter ended September 30, 2024, dated October 30, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

Forward Looking Statements

Forward Looking Statements This communication contains certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 regarding Global Payments, including, but not limited to, statements about the strategic rationale and benefits of the proposed sale of AdvancedMD, Inc. to Francisco Partners Management, L.P. (the "Proposed Transaction"). Statements can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "intends," "plan," "forecast," "could," "should," "will," "would," or words of similar meaning. These forward-looking statements are based on Global Payments' current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties, many of which are beyond Global Payments' control. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and therefore actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: Global Payments' ability to complete the Proposed Transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing any necessary regulatory approvals and the satisfaction of other closing conditions to consummate the Proposed Transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement relating to the Proposed Transaction; failure to realize the expected benefits of the Proposed Transaction; significant transaction costs and/or unknown or inestimable liabilities; disruptions from the Proposed Transaction, making it more di

Signatures

Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. GLOBAL PAYMENTS INC. Date: October 30, 2024 By: /s/ Joshua J. Whipple Joshua J. Whipple Chief Financial Officer

View on Read The Filing