Alliance Data Systems to sell $500 million notes due January 2026; initial talk mid-to-high 6% area

By Paul A. Harris

Portland, Ore., Sept. 17 – Alliance Data Systems Corp. plans to price a $500 million offering of senior notes due Jan. 15, 2026 in a Thursday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the mid-to-high 6% area, a bond trader said.

BofA Securities Inc., MUFG, Wells Fargo Securities LLC, Truist Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., RBC Capital Markets Corp. and CIBC World Markets Corp. are the joint bookrunners.

SMBC Nikko Securities America Inc., Scotia Capital (USA) Inc., Citizens Capital Markets Inc., BBVA Securities Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Raymond James & Associates, Regions Securities LLC, Synovus Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A for life notes become callable after two years at par plus 50% of the coupon. They feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Columbus, Ohio-based marketing services provider plans to use the proceeds to repay $493 million under its term loan.

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