First Data credit facility amendment receives enough consents to pass

By Sara Rosenberg

New York, Aug. 10 - First Data Corp.'s amendment proposal passed even before Tuesday's consent deadline hit as approvals were received from over 50% of the company's senior secured credit facility lenders, according to a market source.

Under the amendment, the company is allowed to issue secured notes to repay term loans, and any notes sold by the company would have to be offered on a pro rata basis to all term loan lenders in exchange for an equivalent amount of term loans.

The effectiveness of the amendment is subject to the company selling at least $500 million of notes to prepay term loans at par within 90 days of execution of the amendment.

Additionally, the amendment sets the junior debt cap at $3.5 billion. This debt would be used to redeem or repay senior or senior subordinated notes or other debt.

The amendment also gives the company the ability to extend revolver or term loan commitments at a later date, with any extended debt able to have higher pricing or other modified terms compared to the non-extended debt.

And, the amendment reduces the accordion feature under the credit agreement to $1 billion from $1.5 billion.

Lastly, the amendment excludes from the calculation of consolidated senior secured debt certain debt secured by a lien ranking junior to the liens securing the obligations under the senior secured credit facility.

Lenders were offered a 10 bps amendment fee.

Credit Suisse, Citigroup and KKR Capital Markets are the joint lead arrangers on the amendment, with Credit Suisse the left lead.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.