Black Knight Intends to Raise $1.6B Facility
Black Knight Financial Services (BKFS) announced that its wholly-owned subsidiary, Black Knight InfoServ, intends to raise a new $1.6 billion senior secured credit facility, anticipated to be comprised of a $400 million five-year senior secured revolver, $800 million five-year senior secured term loan A facility and $400 million seven-year senior secured term loan B facility.
The company said the proceeds of the facilities are expected to be used to repay, in part, the mirror loan and intercompany loans from Fidelity National Financial, the indirect parent of BKIS, and pay related costs and expenses.
The facilities will be borrowed by BKIS, guaranteed by BKFS, BKIS and certain of BKIS’s existing and future domestic subsidiaries and be secured by substantially all tangible and intangible assets of BKFS, BKIS and certain of BKIS’s existing and future domestic subsidiaries.
BKFS also announced that BKIS and Black Knight Lending Solutions, Inc., a wholly-owned subsidiary of BKIS, have issued a notice of redemption to redeem approximately $205 million aggregate principal amount of their outstanding 5.75% Senior Notes Due 2023 at a redemption price of 105.75% of the principal amount thereof, plus accrued and unpaid interest on the notes redeemed to, but not including, the redemption date of May 29, 2015. The paying agent will be U.S. Bank National Association.
The principal, premium and interest accrued will be paid from a portion of the proceeds of the IPO. Following the redemption, the principal amount of the notes outstanding will be $390 million and will remain guaranteed by FNF. The redemption is subject to the completion of the IPO.
BKFS, a Fidelity National Financial (FNF) company, is the mortgage and finance industries’ leading provider of integrated technology, data and analytics solutions that facilitate and automate many of the business processes across the mortgage lifecycle.