Global Payments Inc. (NYSE: GPN) has taken a significant strategic step forward with the execution of a \(7.25 billion revolving credit agreement, effective May 15, 2025. This \)7.25 billion unsecured revolving credit facility plays a critical role in financing the company’s previously announced acquisition of Worldpay Holdco, LLC, a transformative deal poised to enhance Global Payments’ global footprint and product offering.
Under the credit agreement, \(5.75 billion in commitments were immediately available on the closing date, with an additional \)1.5 billion set to be made available upon the closing of the Worldpay acquisition. The total commitments under this facility can be increased to $7.5 billion if needed. The facility features a flexible drawdown in multiple currencies, including US dollars, euros, pounds sterling, and Canadian dollars, with interest rates that range from 1.000% to 1.750%, initially set at 1.375%, depending on the company’s credit rating.
This revolving credit facility matures five years from the closing date and includes provisions for two one-year extension options, providing Global Payments with strong financial flexibility to manage capital needs related to the acquisition and other strategic initiatives. The facility replaces an existing credit agreement from August 19, 2022, reinforcing the company’s favorable debt profile.
Complementing this credit facility move, Global Payments adjusted its bridge facility commitments with JPMorgan Chase Bank, reducing the bridge loan commitments from \(7.7 billion to \)6.2 billion, signaling a prudent approach to liquidity management as it progresses with the Worldpay deal.
Financial Context and Strategic Implications:
As of the fiscal year ending December 31, 2024, Global Payments reported total revenue of approximately \(10.11 billion and net income of \)1.57 billion, showcasing solid profitability and scale ahead of this acquisition. Long-term debt stood at \(15.16 billion, while operating cash flow was robust at \)3.53 billion, providing a strong cash flow foundation to support incremental debt issuance related to the acquisition financing.
From previous quarterly earnings calls,
CEO Cameron Bready described the Worldpay acquisition as a unique catalytic opportunity to accelerate Global Payments’ transformation agenda and growth strategy unlock value, expand the company’s global presence, and enhance product diversity.
The company has highlighted revenue growth of 6-7% expected for 2023 prior to the acquisition, supported by strong performance across U.S. and technology-enabled businesses including e-commerce, omnichannel, payment solutions, and payroll services.
Management has expressed confidence in synergy realization from the Worldpay integration, expecting enhanced operational efficiencies and cross-selling opportunities that will underpin sustainable margin expansion over time.
Global Payments’ financial strategy, backed by this sizeable revolving credit agreement, will enable the company to efficiently execute its acquisition plans while maintaining favorable liquidity and debt metrics. The availability of a multi-currency facility with competitive pricing amidst a changing interest rate environment underlines Global Payments’ strong credit positioning.
This strategic credit deal also positions Global Payments to navigate ongoing economic uncertainties and potential regulatory headwinds effectively — essential for a payments technology company operating in global markets influenced by tariffs, regulatory shifts, and evolving government efficiency mandates.
The Worldpay acquisition and financing structure mark a pivotal inflection point for Global Payments as it continues to transform into a more diversified, technology-enabled commerce solutions provider with a robust balance sheet ready for long-term sustainable growth.
For more details, view the official 8-K filing here: Global Payments Inc. 8-K May 15 2025.
Tags: GPN, Global Payments Inc, Q2 2025, revolving credit facility, Worldpay acquisition, payments industry financing