First American Payment flexes first-lien loan to Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 10 - First American Payment Systems LP reduced pricing on its $250 million six-year first-lien term loan (B1) to Libor plus 450 basis points from talk of Libor plus 500 bps, according to a market source.

The loan still has a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection for one year.

First-lien lenders had until 5 p.m. ET on Wednesday to recommit to the deal, the source added.

The company's $405 million credit facility also includes a $30 million five-year revolver (B1) and a $125 million 61/2-year second-lien term loan (Caa1).

Pricing on the second-lien loan is coming in line with talk at Libor plus 950 bps with a 1.25% floor and a discount of 98.

Call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Covenants are maximum leverage and interest coverage ratios.

Proceeds will be used to refinance existing debt and fund a dividend.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal.

First American Payment is a Fort Worth, Texas-based provider of payment processing services.

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