Global Payments Inc. (GPN) has announced the completion of a $300 million, 3-year unsecured term loan with a consortium of financial institutions.
The electronic transaction services provider said it plans to use the funds to repay its $350 million revolving credit arrangement.
The revolving facility was deployed for the $307.7 million acquisition of the remaining 49% ownership in the company’s U.K. joint venture with HSBC Bank Plc.
The loan is structured in 2 tranches, a $230 million and another 44 million British pounds sterling tranche (equivalent to $70 million).
Global Payments also stated that the original loan amount was $150 million. However, on account of strong investor demand, the amount was boosted to $300 million.
GPN, a Zacks #3 Rank (“Hold”) stock, has advanced more than 2% on volume of approximately 266,000, which is well below the average daily volume of about 633,000.
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