First Data firms roughly $3.7 billion extended term loan at 99.75 OID

By Sara Rosenberg

New York, March 24 – First Data Corp. firmed the size of its extended term loan due March 24, 2021 at $3,713,517,089 and set the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the loan is Libor plus 400 basis points with no Libor floor, and there is 101 soft call protection for six months.

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

Proceeds will be used to help refinance the company’s term loan due in March 2018 in full.

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 with the proceeds from a recently priced offering of $900 million of 5% senior secured notes due 2024.

The company’s existing $1,004,000,000 term loan due March 24, 2021 will be combined with the extended term loan into one fungible tranche, so pro forma for the transaction, the company’s 2021 term loan will total roughly $4.72 billion.

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

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