First Data prices new term loan at Libor plus 500 bps, OID 98¼

By Sara Rosenberg

New York, Sept. 13 - First Data Corp. launched on Thursday morning a $400 million first-lien term loan (NA/NA/BB-) due September 2018 and then upsized it to $750 million in the afternoon, according to a market source.

Pricing on the loan is Libor plus 500 basis points with no Libor floor, the source said.

At first, the original issue discount was still to be determined, but in the early afternoon it emerged at 981/4, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Bank of America Merrill Lynch are the joint lead arrangers on the deal.

Commitments were due at 2 p.m. ET on Thursday.

Proceeds will be used to repay non-extended U.S. term loan borrowings.

In addition, the company intends to use proceeds from a 6¾% senior secured notes offering to pay down term loan debt as well. The notes were upsized to $850 million from $250 million.

First Data is an Atlanta-based electronic commerce and payment processing company.

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