Industry News

Fidelity to recapitalize FNIS

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Fidelity National Financial today announced that its board of directors has approved a plan to recapitalize its subsidiary, Fidelity National Information Services (FNIS), and to pay a special cash dividend to Fidelity stockholders. FNIS is the holding company for Fidelity's technology solutions, processing services and information services businesses. Under the terms of the recapitalization plan, FNIS will enter into up to $2.8 billion in senior secured credit facilities, for which indicative commitments have been received, with a consortium of participating lenders. The proceeds of those senior secured credit facilities, which will not be guaranteed by Fidelity, will be fully drawn at closing. FNIS will repay all the debt outstanding under its existing credit facility and will distribute up to $2.7 billion to Fidelity. The cash distribution from FNIS to FNF is expected to constitute a tax-free transaction for Fidelity. The recapitalization transaction is expected to close in th...