Vantiv plans $1.65 billion debt financing for Mercury Payment purchase

By Sara Rosenberg

New York, May 12 - Vantiv Inc. has received a commitment for $1.65 billion of debt financing to fund its acquisition of Mercury Payment Systems LLC from Silver Lake for $1.65 billion, company officials said in a conference call on Monday.

Officials said that the new debt will include an incremental term loan A and a $1 billion term loan B.

The all-in cost of capital is expected around 3%, so the "cost of capital to complete this transaction is pretty attractive," officials added in the call.

JP Morgan, Bank of America Merrill Lynch and Credit Suisse are leading the financing.

Closing is expected in the second quarter, subject to required U.S. antitrust clearance and other customary conditions.

Pro forma leverage at close will be 4.6 times.

The company expects that its strong free cash flow generation will support delivering of up to 1 times annually.

Vantiv is a Symmes Township, Ohio-based payment processor. Mercury Payment Systems is a Durango, Colo.-based payment technology company.

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