FIS Announces Proposed Offering of Senior Notes

Rhea-AI Summary

FIS (NYSE: FIS) plans a multi-tranche offering of senior notes in U.S. dollars to repay commercial paper debt and for general corporate purposes. This offering is contingent on market conditions and will be managed by J.P. Morgan Securities, BofA Securities, MUFG Securities, and Wells Fargo Securities. The offering is conducted under an effective shelf registration statement filed with the SEC as of June 21, 2022. The press release clarifies that it does not constitute an offer to sell or solicit offers to buy any securities.

Positive

• Intended use of proceeds for debt repayment could strengthen FIS's balance sheet.
• The offering is managed by reputable financial institutions, enhancing market confidence.

Negative

• Potential dilution of existing shareholders if the offering impacts stock value.
• Reliance on debt repayment may raise concerns about FIS's financial leverage.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- FIS^® (NYSE: FIS), a global leader in financial services technology, today announced that it intends, subject to market and other considerations, to make a multi-tranche offering of senior notes denominated in U.S. dollars (the “Senior Notes”). FIS intends to use the net proceeds from the Senior Notes offering for the repayment of debt under its commercial paper programs, with any remaining proceeds to be used for general corporate purposes.

J.P. Morgan Securities LLC, BofA Securities, Inc., MUFG Securities Americas Inc. and Wells Fargo Securities, LLC are joint book-running managers for the Senior Notes offering. The Senior Notes offering is being made only by means of the applicable prospectus supplement and the accompanying prospectus. You may obtain copies of these documents without charge from the Securities and Exchange Commission (the “SEC”). Alternatively, you may request these documents by calling J.P. Morgan Securities LLC at +1 (212) 834-4533; BofA Securities, Inc. at +1 (800) 294-1322; MUFG Securities Americas Inc. at +1 (877) 649-6848; or Wells Fargo Securities, LLC at +1 (800) 645-3751. The Senior Notes are being offered pursuant to an effective shelf registration statement filed with the SEC on June 21, 2022.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Senior Notes, nor will there be any sale of the Senior Notes in any jurisdiction in which such offer, solicitation or sale is not authorized or to any person to whom it is unlawful to make such offer, solicitation or sale. Any offer, solicitation or sale of the Senior Notes will be made only by means of the applicable prospectus supplement and the accompanying prospectus.

About FIS

FIS is a leading provider of technology solutions for financial institutions and businesses of all sizes and across any industry globally. We enable the movement of commerce by unlocking the financial technology that powers the world’s economy. Our employees are dedicated to advancing the way the world pays, banks and invests through our trusted innovation, system performance and flexible architecture. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500^® and the Standard & Poor’s 500^® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).

Forward-looking Statements

This news release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future events and are not statements of fact, actual results may differ materially from those projected. FIS undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the risk that the offering described herein is not completed, the risk that the proceeds are not able to be used for the purposes stated as a result of unforeseen circumstances and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of FIS’ Form 10-K for the year ended December 31, 2021, FIS’ Form 10-Q for the quarterly period ended March 31, 2022 and FIS’ other filings with the SEC.

This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220706005612/en/

Kim Snider, 904.438.6278

Senior Vice President

FIS Global Marketing and Communications

kim.snider@fisglobal.com

or

Nathan Rozof, CFA, 904.438.6918

Executive Vice President

FIS Corporate Finance and Investor Relations

nathan.rozof@fisglobal.com

Source: Fidelity National Information Services

FAQ

What is FIS planning with the new senior notes?

FIS intends to use the proceeds from the senior notes offering to repay existing debt and for general corporate purposes.

Who are the managers for FIS's senior notes offering?

The senior notes offering is managed by J.P. Morgan Securities, BofA Securities, MUFG Securities, and Wells Fargo Securities.

What is the expected impact of the senior notes offering on FIS's shareholders?

While the offering aims to reduce debt, it may also lead to share dilution if it affects FIS's stock value negatively.

When was the shelf registration statement for FIS's offering filed?

The effective shelf registration statement for the offering was filed with the SEC on June 21, 2022.