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FIS; WorldPay Sale Paves Way to Pay Down EUR Credit Lines

TECHNOLOGY

FIS (FIS US) has completed the sale of WorldPay and will pay down debt, likely EUR lines, we feel.


  • FIS announced this deal in Jul-23, which values WorldPay at USD18.5bn, having bought the business in 2019 for USD43bn, indicating the extent of value destruction in some areas of fintech.
  • Positively, FIS has been clear today on the use of proceeds (BBG):

*FIS TO USE PROCEEDS TO PAY DOWN DEBT

*FIS TO USE PROCEEDS TO BUY BACK AT LEAST $3B SHARES OVER 2024

  • FIS’s EUR credit curve is relatively undisturbed today, slightly tighter YTD. FIS was, previously around 25% a “non North American” firm, in revenue terms. Our sense is WorldPay is disproportionately “European” (it was founded out of NatWest) such that paying down the Euro lines is likely preferable to FX-align FIS's credit stack with revenues.

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