S&P rates First American Payment loans B+

Standard & Poor's said it assigned a preliminary B+ corporate credit rating to First American Payment Systems LP and a preliminary B+ issue-level and 3 recovery ratings to the company's proposed $255 million first-lien credit facility, consisting of a $225 million term loan due 2016 and a $30 million revolving credit facility due 2015.

The outlook is stable.

Proceeds from the new senior secured facility, along with $4.5 million of cash on hand, to refinance its existing debt and to pay a $135 million dividend to its private-equity sponsor and other shareholders.

"The preliminary ratings on FAPS reflect the company's modest scale and market share in the highly competitive global payment processing industry, as well as our expectation that significant recurring revenues and diverse sales channels will enable the company to further maintain revenue growth and operating performance in the near term," S&P analyst Alfred Bonfantini said in a statement.

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