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SEC Filings

FIRST DATA CORP filed this Form 10-Q on 10/31/2018
Entire Document

We have a $1.25 billion senior secured revolving credit facility maturing on June 2, 2020. Included in the table above in "Letters of credit" is $250 million of the senior secured revolving credit facility available for letters of credit, of which $4 million and $29 million of letters of credit were issued under the facilities as of September 30, 2018 and December 31, 2017, respectively. On September 30, 2018 and December 31, 2017, we had $0 million and $272 outstanding on the senior secured revolving credit facility, respectively.
Covenant Compliance
Under the senior secured revolving credit and term loan facilities, certain limitations, restrictions, and defaults could occur if we are not able to satisfy and remain in compliance with specified financial ratios. We have agreed that we will not permit the Consolidated Senior Secured Debt to Covenant EBITDA (both as defined in the agreement) Ratio for any 12 month period (last four fiscal quarters) to be greater than 6.00 to 1.00.
The breach of this covenant could result in a default under the senior secured revolving credit facility and the senior secured term loan credit facility and the lenders could elect to declare all amounts borrowed due and payable. Any such acceleration could also result in a default under the indentures for the senior secured notes, senior notes, and senior subordinated notes. As of September 30, 2018, we were in compliance with all applicable covenants, including our sole financial covenant with Consolidated Senior Secured Debt of $11.4 billion, Covenant EBITDA of $3.6 billion and a Ratio of 3.15 to 1.00.

The calculation of Covenant EBITDA under our senior secured facilities was as follows:
(in millions)
Last twelve
months ended
September 30, 2018
Net income attributable to First Data Corporation

Interest expense, net

Income tax benefit
Depreciation and amortization



Loss on debt extinguishment

Stock-based compensation

Net income attributable to noncontrolling interests and redeemable noncontrolling interest

Projected near-term cost savings and revenue enhancements(a)

Restructuring, net

Non-operating foreign currency losses
Equity entities taxes, depreciation and amortization(b)

Divestitures, net

Covenant EBITDA

Reflects cost savings and revenue enhancements projected to be realized as a result of specific actions as if they were achieved on the first day of the period. Includes cost savings initiatives associated with the business optimization projects and other technology initiatives. We may not realize the anticipated cost savings pursuant to our anticipated timetable or at all.
Represents our proportional share of income taxes, depreciation, and amortization on equity method investments.
Includes items such as pension losses, litigation and regulatory settlements, impairments, deal and deal integration costs, acquisitions and dispositions, and other as applicable to the period presented.
Off-Balance Sheet Arrangements
During the nine months ended September 30, 2018, there were no material changes outside the ordinary course of business in our off-balance sheet arrangements from those reported as of December 31, 2017 in our Annual Report on Form 10-K for the year ended December 31, 2017.