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FOR IMMEDIATE RELEASE
June 22, 2018
Worldpay Announces Loan Repricing and Interest Rate Hedging Agreements
CINCINNATI, June 22, 2018
Worldpay, Inc. (NYSE: WP, LSE: WPY), a leading payments technology company, successfully closed an amendment to its credit facility on June 22, 2018. Under the terms of the agreement, Worldpay expects to reduce the pricing of its $6.5 billion in Term Loans by approximately 25 basis points, resulting in annual interest expense savings of approximately $15 million, net of expenses; a partial year benefit is anticipated in 2018 due to the timing of the amendment. The Company also recently entered into additional interest rate hedging agreements, which will reduce its sensitivity to future interest rate changes by lowering the company's variable interest rate exposure to below 40 percent.
While Worldpay's total borrowings did not change as a result of these activities, the amendment further diversifies the Company's currency mix within its debt structure by establishing a new class of Term A Loans (A-6) of approximately £488 million, and enhances the Company's Term A and B Loan ratio by increasing its commitments under the Term A-5 Loan by $100 million. The proceeds of the Term A-6 Loans and Term A-5 Loans will be used to refinance the existing Term A-3 Loans and Term A-5 Loans as well as to reduce the existing Term B-3 Loans and Term B-4 Loans by $50 million each.
"We've successfully completed a refinancing and hedging program that together will provide the company significant annual savings and meaningfully reduce our exposure to future changes in interest rates," said Stephanie Ferris, chief financial officer of Worldpay. "We anticipate this refinancing to result in the creation of additional value to our shareholders."
The amendment and a summary of the amended terms will be filed with the Securities and Exchange Commission on Form 8-K.
Pursuant to its obligations under the U.S. Securities Exchange Act of 1934, as amended, the amendment and a summary of the amended terms will be filed with the Securities and Exchange Commission on Form 8-K on June 22, 2018. A copy of the Company's Form 8-K will also be available on the SEC's website at http://www.sec.gov.
The Company will shortly submit the corresponding Form 8-K and accompanying exhibits in respect of the Financing Arrangements to the National Storage Mechanism and they will be available for inspection at: http://www.morningstar.co.uk/uk/NSM.
Nathan Rozof or Ignatius Njoku, Investor Relations
Andrew Ciafardini, Corporate Communications
+1 513 900 4811
+1 513 900 5308
Goldman Sachs International (U.K. Corporate Broker to Worldpay, Inc.)
Smithfield (PR adviser to Worldpay, Inc.)
+44 (0) 207 774 1000
+44 (0) 203 047 2538
Worldpay, Inc. LEI number: 213800TV56O7TZI4U902
About Worldpay, Inc.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global integrated omni-commerce. With industry-leading scale and an unmatched integrated technology platform, Worldpay offers clients a comprehensive suite of products and services globally, delivered through a single provider.
Worldpay processes over 40 billion transactions annually through more than 300 payment types across 146 countries and 126 currencies. The company's growth strategy includes expanding into high-growth markets, verticals and customer segments, including global eCommerce, Integrated Payments and B2B.
Worldpay, Inc. was formed in 2018 through the combination of the No. 1 merchant acquirers in the U.S. and the U.K. Worldpay, Inc. trades on the New York Stock Exchange as "WP" and the London Stock Exchange as "WPY."
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