Fifth Third launches first-lien term loan, will take out second-lien

By Sara Rosenberg

New York, May 9 - Fifth Third Processing Solutions LLC held a lender call on Monday to launch a first-lien term loan that will reprice its existing first-lien loan and repay its second-lien term loan, according to a market source.

Goldman Sachs & Co., J.P. Morgan Securities LLC and Fifth Third Securities Inc. are the lead banks on the deal.

The company attempted a transaction like this earlier in the year, but it was pulled in March. At that time, Fifth Third was planning a $1.775 billion first-lien term loan talked at Libor plus 300 basis points to 325 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year.

In 2010, the company successfully obtained a $1.575 billion first-lien term loan and a $200 million second-lien term loan in connection with the acquisition of National Processing Co.

Pricing on the existing first-lien term loan is Libor plus 400 bps, and pricing on the second-lien loan is Libor plus 675 bps, with both having a 1.5% Libor floor. Both were sold at an original issue discount of 99. The second-lien loan has soft call protection of 102 in year one and 101 in year two.

Fifth Third Processing is a Cincinnati-based provider of payment transaction processing and acceptance services.

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