First American Payment to launch $405 million facility on Thursday

By Sara Rosenberg

New York, Sept. 19 - First American Payment Systems LP is scheduled to hold a bank meeting at 2 p.m. ET on Thursday to launch a proposed $405 million credit facility, according to sources.

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

The facility consists of a $30 million five-year revolver, a $250 million six-year first-lien term loan and a $125 million 61/2-year second-lien term loan, sources said.

Price talk on the revolver and first-lien term loan is Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 950 bps with a 1.25% floor and a discount of 98.

Included in the first-lien term loan 101 repricing protection for one year, and call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three, sources added.

Covenants are maximum leverage and interest coverage ratios.

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

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

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