First Data new extended term loan to be $2.8 billion after paydown

By Sara Rosenberg

New York, March 9 - First Data Corp. has received commitments to extend $3.2 billion of its term loan, but following a chosen paydown, the tranche will actually be sized at $2.8 billion, according to a market source.

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

Funds for the term loan repayment will come from an $850 million senior secured notes offering.

The term loan debt is being extended from September 2014 to March 2017 at pricing of Libor plus 500 basis points versus non-extended pricing of Libor plus 275 bps.

With the extension, the company is amending its credit facility to increase the amount of debt that it can get under its incremental facility option, allow for the refinancing of any remaining 2014 loans at a later date and permit the replacement of the revolver due 2013 if it expires.

Lenders were offered a 10 bps consent fee for the amendment which passed during the week of Feb. 27.

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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