Fifth Third sets $1.62 billion term B-1 spread at Libor plus 325 bps

By Sara Rosenberg

New York, May 17 - Fifth Third Processing Solutions LLC firmed pricing on its $1.621 billion first-lien term loan B-1 due November 2016 at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

As before, the loan has a 1.25% Libor floor, a par offer price and 101 soft call protection for one year.

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 and has 101 soft call protection for one year. This tranche was already spoken for and, therefore, was not marketed.

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.

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

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