First Data launches incremental term loan, amendment and extension

By Sara Rosenberg

New York, March 22 – First Data Corp. launched to investors a fungible incremental term loan due March 24, 2021 and an amendment and extension of a portion of its term loan due in 2018, according to a market source.

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

No lender call was held to launch the transaction.

Under the proposal, some of the 2018 term loan will be extended to March 24, 2021, and a portion of the 2018 term loan will be refinanced with proceeds from the incremental term loan.

Sizes for the extended portion and for the incremental term loan are still to be determined.

The incremental term loan and the extended term loan are talked at Libor plus 400 basis points with no Libor floor and an original issue discount of 99.5 to 99.75, the source said.

All of the company’s March 2021 term loans will get 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

There is about $4.6 billion outstanding under the company’s 2018 term loan, but that amount is expected to be reduced to about $3.7 billion after giving effect to planned prepayments from the proceeds of a recently priced offering of $900 million of 5% senior secured notes due 2024.

First Data is an Atlanta-based provider of payment processing solutions.

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