First Data to hold bank meeting Monday for $15 billion credit facility

By Paul A. Harris

St. Louis, Sept. 14 - First Data Corp. will hold a bank meeting on Monday afternoon for its $15 billion credit facility (Ba3/BB-), according to market sources.

The tranches include a $2 billion six-year revolving credit facility at Libor plus 275 basis points with a 50 bps undrawn fee, a $5 billion seven-year senior secured term loan B-1 at Libor plus 275 bps, pre-payable at par, a $5 billion seven-year term loan B-2 at Libor plus 275 bps, callable at 103, 102, 101 (including $1 billion equivalent euro-denominated sub-tranche) and a $3 billion seven-year senior secured term loan B-3 at Libor plus 275 bps, non-callable for 3.25 years.

All tranches are talked at 96.00.

Credit Suisse, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Lehman Brothers and Merrill Lynch are the bookrunners.

The underwriters reserve the right to offer an additional $3 billion until the end of the present year.

Any unsold amount of the term loans, up to $5 billion, is subject to a lock up.

The deal includes a senior leverage covenant.

Proceeds will be used to help fund the leveraged buyout of the company by Kohlberg Kravis Roberts & Co.

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

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