Fifth Third Processing launches $1.93 billion credit facility

By Sara Rosenberg

New York, Oct. 14 - Fifth Third Processing Solutions LLC held a bank meeting on Thursday to launch its proposed $1.925 billion credit facility, according to a market source.

Goldman Sachs, JPMorgan, Credit Suisse, Morgan Stanley and Bank of America are the lead banks on the deal.

The facility consists of a $150 million revolver (Ba3/BB-), a $1.5 billion six-year first-lien term loan (Ba3/BB-) and a $275 million seven-year second-lien term loan (B2/B-), the source said.

The revolver is talked at Libor plus 350 basis points with a 50 bps unused fee, the first-lien term loan is talked at Libor plus 425 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 700 bps to 725 bps with a 1.75% Libor floor and an original issue discount of 98, the source said.

In addition, the second-lien term loan has soft call protection of 102 in year one and 101 in year two.

Proceeds will be used to help fund the acquisition of National Processing Co. and refinance existing debt.

The transaction is expected to close in early November, pending satisfaction of customary closing conditions.

Fifth Third Processing is a Cincinnati-based provider of payment transaction processing and acceptance solutions. National Processing is a Louisville, Ky.-based merchant acquirer focused on the small and medium enterprise market.

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