Total System gets $2 billion bridge commitment for TranFirst purchase

By Wendy Van Sickle

Columbus, Ohio, Jan. 27 – Total System Services, Inc. entered into a commitment letter for a 364-day $2 billion bridge term loan to fund its acquisition of TransFirst Holdings Corp., according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, BofA Merrill Lynch, U.S. Bank NA and Wells Fargo Securities are the lead arrangers and JPMorgan Chase the administrative agent.

The bridge loan would have interest ranging from Libor plus 100 basis points to Libor plus 175 bps, depending on Total System’s debt rating, and a duration fee of 50 bps, stepping up to 75 bps 180 days after closing and to 100 bps 270 days after closing.

Under a purchase agreement, Total System will acquire TranFirst for $2.35 billion in cash less net indebtedness of TransFirst as of the closing. Either party may terminate the agreement if closing has not occurred by July 24.

Total Systems Services is a global payment solutions provider based in Columbus, Ga. TransFirst is a Hauppauge, N.Y.-based provider of transaction processing services and payment enabling technologies.

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