Jeremy C. Stein submitted his resignation Thursday as a member of the Board of Governors of the Federal Reserve System, effective May 28, 2014. Stein, who has been a member of the Board since May 30, 2012, submitted his letter of resignation to President Obama and plans to return to his teaching position in Harvard University’s department of economics.
The U.S. prime rate will continue to hover at 3.25% but the LIBOR is slowly heading higher, a little screwy given the overall economic situation. RAM Research predicts the LIBOR will head up to 0.35%, a ten basis points jump from the third quarter, and the lowest since the second quarter of 2011. New car…
NICE Actimize, a NICE Systems (NICE) business and the largest and broadest provider of a single financial crime, risk and compliance software platform for the financial services industry, announced today the availability of the Actimizea Benchmark Monitoring Solution, a solution designed to assist in detecting and identifying rate-setting activities, processes and procedures within a single offering combining communications channel insight and incorporating alert, case management and reporting. The solution enables firms to have a better understanding of what is being discussed and traded within its trading floors from a single interface. Additionally, this provides internal compliance divisions the ability to respond rapidly to suspicious rate-rigging issues, thereby increasing chances at lowering potential regulatory risk by speeding resolutions.
Fidelity National Information Services completed an amendment to its existing credit agreement. The transaction resulted in the increase of FIS’ revolving loan capacity by $850 million to $2.0 billion and the amendment of certain terms and conditions, including the removal of provisions regarding the granting of collateral by FIS and its subsidiaries. The unsecured credit agreement totals $4.0 billion in the aggregate, including $2.0 billion of term loans and $2.0 billion of revolving loan capacity. The maturity of all obligations under the amended credit agreement remains unchanged at March 30, 2017.
Global Cash Access Holdings announced financial results for the first quarter ended March 31, 2012. Fiscal First Quarter 2012 Highlights Operating income increased 69% quarter-over-quarter to $15.7 million EBITDA increased 51% quarter-over-quarter to $19.8 million Net income per share – diluted increased 267% quarter-over-quarter to $0.11 Cash EPS increased 133% quarter-over-quarter to $0.21 “We are…
FIS banking and payments amended to extend its existing credit agreement, including the release of collateral when investment grade credit ratings are attained. The transaction also resulted in the extension of a substantial portion of Term Loan A and revolving loan maturities from 2014 to 2017 and a reduction in borrowing costs. There was no material change to FIS’ total leverage as a result of the amendment. The credit facility totals $3.7 billion in the aggregate, including $2.1 billion of Term Loan A and $1.15 billion of revolving loan capacity that will mature in March 2017; $250 million of Term Loan A that will mature in July 2014; and $200 million of Term Loan B that will mature in July 2016.
TNS completed a refinancing of its existing senior secured credit facilities. The new senior secured credit facilities are comprised of a fully funded $350 million five-year term loan and a $100 million, five-year revolving credit facility, under which $25 million was drawn at closing. The interest rate at closing on the new facilities is LIBOR plus 300 bps, compared to LIBOR plus 400 bps (with a 200 bps LIBOR floor) on the existing facilities. The company has used the proceeds from the new senior secured credit facilities to repay all amounts outstanding under the existing facilities, under which there was $373 million outstanding, as well as to pay fees and expenses associated with the new senior secured credit facilities of approximately $7 million.
FIS, the world’s largest provider of banking and payments technology, announced the completion of the amendment of its existing credit agreement and that, separately, it has closed its private offering of an additional $150 million aggregate principal amount of 7.625% senior unsecured notes due July 15, 2017 (the “2017 Notes”). The amended credit facility includes $2.15 billion of Term Loan A maturing July 2014, $1.0 billion of revolving loan capacity maturing July 2014 and $1.25 billion of Term Loan B maturing July 2016. The amended facility provides FIS with $400.0 million of additional Term Loan A maturing July 2014 and $78.5 million of additional revolving loan capacity maturing July 2014. FIS also has arranged further commitments for an additional $50 million in revolving loan capacity maturing July 2014 under its credit facility, which commitments FIS expects will be put in place in January 2012.
Global Cash Access posted its 3Q/11 revenue of $136.9 million, down 10% from the year ago period of $152.1 million, thanks to a loss of its largest customer in late 2010 which accounted for approximately $21.3 million in revenue during the third quarter of 2010. The Company incurred approximately $0.8 million of non-recurring expenses related…
Global Cash Access posted its 2Q/11 revenue down 14.1% to $135.1 million, from the year ago figure of $157.2 million, due in great part to having lost its largest customer in late 2010 which accounted for approximately $21.3 million in revenue during the second quarter of 2010. Meanwhile, operating income was $7.1 millionas GCA incurred approximately $1.6 million in one-time expenses in the quarter, consisting primarily of $1.2 million in one-time charges associated with additional depreciation and amortization expense associated with the final purchase price allocation of the acquisition of Western Money Systems in 2010 and approximately $0.4 million associated with executive severance costs. Income before tax in the second quarter of 2011 was $2.5 million, which included the one-time charges discussed above. With this, the Company estimates that cash earnings per share for the fiscal year ending December 31, 2011 will be between approximately $0.38 and $0.43.
MoneyGram International announced all proposals submitted for a vote during the Special Meeting of MoneyGram International shareholders held received shareholder approvals. The proposals were related to the previously announced Recapitalization Agreement entered into by MoneyGram International, Inc., affiliates and co-investors of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co. and related amendments to the Company’s charter documents reflecting proposed changes agreed in the Recapitalization Agreement. Following the shareholder vote, the Company today also completed the recapitalization transaction contemplated by the Recapitalization Agreement.
MoneyGram International global payment services completed syndication for its new $540 million senior secured credit facility consisting of a $150 million, five-year revolving credit facility and a $390 million, six-year term loan. The net proceeds from the term loan under the new credit facility will be used to consummate the Company’s previously announced recapitalization and to refinance the Company’s existing credit facility. The recapitalization agreement is subject to certain closing conditions, including the approval of the recapitalization by the affirmative vote of a majority of the outstanding shares of the Company’s common stock voting on the recapitalization at a special meeting of the Company’s stockholders currently scheduled for May 18 and the closing of the new senior credit facility or other satisfactory financing.