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Fifth Third talks $1.62 billion term B-1 at Libor plus 325-350 bps
By Sara Rosenberg
New York, May 10 - Fifth Third Processing Solutions LLC is talking its $1.621 billion first-lien term loan B-1 due November 2016 at Libor plus 325 basis points to 350 bps with a 1.25% Libor floor and a par offer price, according to a market source.
The company is also getting a new $150 million first-lien term loan B-2 due November 2017 that is priced at Libor plus 350 bps with a 1.5% Libor floor and a par price. This tranche is already spoken for, and therefore, is not being marketed, the source said.
Both the term loan B-1 and the B-2 have 101 soft call protection for one year.
The term loan B-1 has excess cash flow and mandatory debt sweeps, while the term loan B-2 does not.
Proceeds from the term loans will be used to refinance/reprice the company's existing roughly $1.575 billion first-lien term loan due November 2016 and to repay its $200 million second-lien term loan due November 2017 at a price of 102, due to existing call protection.
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.
Through this transaction, the company is moving to an all first-lien structure but is keeping its existing maturity profile.
Goldman Sachs & Co., J.P. Morgan Securities LLC and Fifth Third Securities Inc. are the lead banks on the deal that launched with a call on Monday afternoon.
Commitments towards the term loan B-1 are due at noon ET on Friday.
Fifth Third Processing is a Cincinnati-based provider of payment transaction processing and acceptance services.
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