FNF Modifies Credit Facility to Help Pay for LPS

Fidelity National Financial Inc. has gotten the lenders representing nearly three-quarters of its $800 million credit facility to agree to an amendment and extension of the line to help pay for the acquisition of Lender Processing Services Inc.

The company added it is pursuing a similar agreement with the lenders on the remaining $205 million.

A week ago, FNF announced it is increasing the cash component of its offer for LPS by $500 million so that it is now paying the $2.9 million consideration in two-thirds cash and one-third stock.

FNF is responsible for $300 million of the increase, with the remaining $200 million coming from Thomas H. Lee Partners LP.

Under the terms of the extension, the line will now mature on July 15, 2018. Pricing remains indexed to Libor at a range of plus 132.5 basis points to 160 bps. The current margin is Libor plus 145 bps.

The current total debt to total capitalization ratio remains at 35%, except for a one-year period after the LPS deal closes, when it will increase to 37.5%.

According to an attachment to an 8-K filing obtained via DisclosureNet.com regarding the extension, JPMorgan Chase, U.S. Bank and Wells Fargo are each lending $65 million; while Bank of the West, BMO Harris Bank, Citibank, Fifth Third Bank, PNC Bank, Regions Bank and Union Bank are each lending $50 million.