Fifth Third Processing Solutions shifts funds, trims term loan pricing

By Sara Rosenberg

New York, Oct. 28 - Fifth Third Processing Solutions LLC moved some funds out of its second-lien term loan and into its first-lien term loan and lowered pricing on both tranches, according to a market source.

The six-year first-lien term loan (Ba3/BB-) is now sized at $1.575 billion, up from $1.5 billion, and the seven-year second-lien term loan (B2/B-) is now sized at $200 million, down from $275 million, the source said.

Pricing on the first-lien term loan was reduced to Libor plus 400 basis points from talk of Libor plus 425 bps to 450 bps, while the 1.5% Libor floor and original issue discount of 99 were left intact.

And, pricing on the second-lien term loan was reduced to Libor plus 675 bps from talk of Libor plus 700 bps to 725 bps, the Libor floor was cut to 1.5% from 1.75% and the original issue discount was lowered to 99 from 98, the source continued.

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

The $150 million revolver (Ba3/BB-) was left unchanged and is priced at Libor plus 350 bps with a 50 bps unused fee.

Goldman Sachs, JPMorgan, Credit Suisse, Morgan Stanley and Bank of America are the lead banks on the $1.925 billion credit facility.

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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