Alliance Data to price $600 million five-year notes on Tuesday, initial talk 5% area

By Paul A. Harris

Portland, Ore., Dec. 16 – Alliance Data Systems Corp. plans to price a $600 million offering of five-year senior notes on Tuesday, according to market sources.

Initial guidance has the deal coming to yield in the 5% area, a New York-based bond trader said.

The offer was set to be shopped on a late Monday morning conference call with investors.

BofA Securities Inc. is the left bookrunner. MUFG, Wells Fargo Securities LLC, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., SMBC Nikko Securities America Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.

Fifth Third Securities Inc., RBC Capital Markets Corp., BBVA Securities Inc., CIBC World Markets, Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., Regions Securities Inc., U.S. Bancorp Investments Inc., Deutsche Bank Securities Inc. and Raymond James & Associates 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 40% equity clawback at par plus the coupon for the first three years, and a 101% poison put.

The Columbus, Ohio-based marketing services provider plans to use the proceeds to pay down its term loans and for general corporate purposes.

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