The Credit Agreement provides for senior secured credit facilities (the “Senior Secured Credit Facilities”) comprised of term A loan tranches, term B loan tranches and a revolving credit facility. Amendment No.4 replaced (1)the existing initial term B loan tranche with a $759.263millionnew term B-3 loan tranche maturing in October 2023 and (2)the existing Rook incremental term B loan tranche with a $1,270million term B-4 loan tranche maturing August 2024. Amendment No.4 also provides that the $535million incremental term B-1 tranche to be funded in connection with the closing of the WorldPay acquisition will, upon the funding thereof, be modified to have the same economic terms as the new term B-4 loan tranche, and that upon the effectiveness of the third amended and restated loan agreement as described in Vantiv’s 8-K dated September11, 2017, additional and conforming changes shall be made to such loan agreement.

The term B loan tranches amortize in equal quarterly installments of 0.25% per quarter, with balloon payments at maturity. The amortization for the new term B-4 tranche will commence on June30, 2018.

The obligations under the Senior Secured Credit Facilities are unconditionally guaranteed by Vantiv Holding and certain of Vantiv, LLC’s existing and subsequently acquired or organized domestic subsidiaries. The Senior Secured Credit Facilities and related guarantees are secured on a first-priority basis (subject to liens permitted under the Credit Agreement) by a lien on substantially all the tangible and intangible assets of Vantiv, LLC and the guarantors, including all of the capital stock held by such obligors (subject to a 65% limitation on pledges of capital stock of foreign subsidiaries and domestic holding companies of foreign subsidiaries), subject to certain exceptions.

Interest on all loans under the Senior Secured Credit Facilities is payable either quarterly or at the expiration of any LIBOR interest period applicable thereto. Borrowings under the Credit Agreement accrue interest at a rate equal to, at Vantiv, LLC’s option, a base rate or LIBOR rate plus an applicable margin. The applicable margin for each of the new term B-3 loan tranche and new term B-4 loan tranche is 200 basis points in the case of LIBOR loans (subject to a 0.0% floor) and 100 basis points in the case of base rate loans (subject to a 0.0% floor). The applicable margin for the incremental term B-2 loan tranche remains 225 basis points in the case of LIBOR loans (subject to a 0.0% floor) and 125 basis points in the case of base rate loans (subject to a 0.0% floor).

Subject to certain conditions and exceptions, Vantiv, LLC is permitted to make voluntary prepayments of the loans under the Senior Secured Credit Facilities and to reduce the existing loan commitments at any time without premium or penalty, except that, with respect to the term B loan tranches, subject to certain exceptions, such prepayments are subject to a premium equal to 1.0% of any of (1)the term B-3 loans prepaid prior to the date that is six months after the Term B-3 Effective Date (as defined in Amendment No.4), (2) the term B-4 loans prepaid prior to the date that is six months after the Amendment No.4 Effective Date (as defined in Amendment No.4) and (3)the incremental term B-2 loans prepaid prior to the date that is six months after the initial funding of the incremental term B-2 loans, in each case, with the proceeds of secured term debt bearing a lower effective interest rate than the debt repaid.

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Subject to certain exceptions, Vantiv, LLC is required to prepay borrowings under the Credit Agreement as follows: (1)with respect to the term loans, with 50% of the net proceeds Vantiv, LLC receives from the incurrence of debt obligations other than permitted debt obligations, (2)with respect to the term loans, with 50% of the net proceeds in excess of $10million individually and $20million in the aggregate in any fiscal year that Vantiv, LLC receives from specified non-ordinary course asset sales or as a result of a casualty or condemnation events, subject to reinvestment provisions and (3)with respect to the tranche B term loans only, with 50% of excess cash flow for each fiscal year of Vantiv, LLC, which percentage is subject to decrease based on Vantiv, LLC’s senior secured leverage ratio.

The Credit Agreement requires Vantiv, LLC to maintain a maximum leverage ratio (based upon the ratio of total funded debt to consolidated EBITDA) and a minimum interest coverage ratio (based upon the ratio of consolidated EBITDA to cash interest expense), each of which are tested quarterly based on the last four fiscal quarters.

The Credit Agreement contains customary representations and warranties and affirmative covenants applicable to Vantiv, LLC, Vantiv Holding (in certain instances) and certain of Vantiv, LLC’s subsidiaries and also contains certain restrictive covenants, including, among others, limitations on: the incurrence of additional debt, liens on property, acquisitions and investments, loans and guarantees, mergers, consolidations, liquidations and dissolutions, asset sales, dividends and other payments in respect of Vantiv, LLC’s capital stock, prepayments of certain debt, transactions with affiliates and modifications of Vantiv, LLC’s organizational documents and certain debt agreements. The Credit Agreement also contains customary events of default.

The foregoing description of the Credit Agreement and Amendment No.4 does not purport to be complete and is qualified in its entirety by reference to Amendment No.4, which is incorporated herein by reference as Exhibit 10.1.

The information required to be reported under this Item 1.01 is incorporated by reference from Item 1.01 of this Current Report on Form 8-K.

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EXHIBIT INDEX

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Vantiv, Inc. Exhibit
EX-10.1 2 d311752dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 AMENDMENT NO. 4 AMENDMENT NO. 4,…
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About Vantiv, Inc. (NYSE:VNTV)

Vantiv, Inc. (Vantiv) is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC (Vantiv Holding). The Company is a payment processor, merchant acquirer and personal identification number (PIN) debit acquirer. The Company operates through two segments: Merchant Services and Financial Institution Services. The Company offers payment processing services that enable its clients to meet their payment processing needs through a single provider, including in omni-channel environments that span point-of-sale, e-commerce and mobile devices. Its value-added services include security solutions and fraud management, information solutions, and interchange management. It also provide critical payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving, and network gateway and switching services.