First Data amendment passes, over $3 billion orders for extension

By Sara Rosenberg

New York, March 1 - First Data Corp.'s credit facility amendment has been approved by lenders, and commitments have been received for the extension of over $3 billion of the term loan due September 2014 into new dollar- and euro-denominated term loans due March 2017, according to a market source.

The deadline for extension commitments is being left open until noon ET on Monday, the source said.

The company was looking to extend at least $2.5 billion of its term loan, so the minimum target has already been achieved.

Pricing on the extended term loan debt is Libor plus 500 basis points versus non-extended pricing of Libor plus 275 bps.

In addition, the amendment increases the amount of debt that the company can get under its incremental facility option, allows for the refinancing of any remaining 2014 loans at a later date and permits the replacement of the revolver due 2013 if it expires.

As a condition of the amendment, the company must issue senior secured notes in an amount to be determined and use the proceeds to prepay a portion of eligible 2017 term loans.

The bond deal will have a maximum size of $1 billion.

Lenders were offered a 10 bps consent fee.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are the lead banks on the deal.

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

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