First American Payment sets first- and second-lien term loan talk

By Sara Rosenberg

New York, Dec. 2 – First American Payment Systems LP disclosed price talk on its $230 million seven-year first-lien term loan B (B1/B+) and $100 million eight-year second-lien term loan (Caa1/CCC+) with its bank meeting on Friday, according to a market source.

The first-lien term loan is talked at Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 950 bps to 975 bps with a 1% Libor floor and a discount of 98, the source said.

The first-lien term loan has 101 soft call protection for six months, amortization of 1% per annum and a total net leverage covenant, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $370 million credit facility also includes a $40 million revolver (B1/B+).

Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Commitments are due on Dec. 15, the source added.

Proceeds will be used to refinance existing debt.

First American Payment Systems is a Fort Worth, Texas-based payments platform serving small- and medium-sized businesses.

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