First Data anticipates extending roughly $5 billion of term loans

By Sara Rosenberg

New York, March 22 - First Data Corp. currently expects to extend about $5 billion of its dollar- and euro-denominated term loan debt to March 24, 2018, according to a news release.

So far, about $4.9 billion of U.S. term loans and $400 million of euro term loans have been committed by lenders for the extension; however, the company may choose to accept less than that amount.

The company has also received commitments to extend about $1.2 billion of its revolver to Sept. 24, 2016 from September 2013.

The revolver maturity would be accelerated to June 24, 2015 if, on that date, the aggregate outstanding principal amount of the company's 9 7/8% senior notes due 2015 and 10.55% senior PIK notes due 2015 exceeds $750 million. The maturity can also be accelerated to Dec. 31, 2015 if, on that date, the company has more than $750 million of its 11¼% senior subordinated notes due 2016 outstanding.

Pricing on the extended term loan and revolver is Libor plus 400 basis points, after flexing up from Libor plus 375 bps during syndication, and the revolver has a 75 bps unused fee.

The company's non-extended term loan due September 2014 is priced at Libor plus 275 bps.

Lenders have the ability to consent to revolver and term loan extension until Thursday.

In order for the amendment and extension to take effect, First Data is required to issue at least $750 million of senior secured notes and use those proceeds to repay term loan borrowings. The company has 90 days from the completion of the amendment to close on the notes offering.

Also, immediately after the effectiveness of the amendment, the company plans to reduce revolver commitments that are subject to the extension in an amount equal to at least 20%.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the lead banks on the amend and extend deal.

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

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