First Data to launch $16 billion credit facility on Wednesday

By Sara Rosenberg and Paul A. Harris

New York, May 25 - First Data Corp. is scheduled to hold a bank meeting on Wednesday to launch its proposed $16 billion credit facility, according to a market source.

Credit Suisse, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Lehman Brothers and Merrill Lynch are the lead banks on the deal.

The facility consists of a $2 billion covenant-light revolver and a $14 billion covenant-light term loan, the source said.

Proceeds from the facility, along with $8 billion of bonds, will be used to help fund Kohlberg Kravis Roberts & Co.'s leveraged buyout of the company for $34.00 in cash per share. The total value of the transaction is about $29 billion.

First Data plans to tender for all of its outstanding bonds in conjunction with the closing.

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services for businesses.

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