First Data seeks to extend term loan to 2017 at Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 8 - First Data Corp. is out to lenders with an extension request, under which it is looking to extend term loan borrowings due in 2014 to 2017, according to a market source.

The extended debt would be priced at Libor plus 500 basis points, which is in line with the existing extended loan due in 2017, the source said.

Non-extended pricing is Libor plus 275 bps.

No fee and no pay down is being offered to extending lenders, the source said.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Earlier this month, the company sold $1.3 billion of 6¾% senior secured notes at 99.193 to yield 6 7/8%. These notes will be used to repay term loan borrowings.

All of the pay down will go to non-extending lenders, the source said.

The settlement date for the notes is Aug. 16.

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

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