S&P: TransFirst loans B, CCC+

Standard & Poor’s said it affirmed the B corporate credit rating on TransFirst Holdings Inc.

The agency also said it assigned a B rating and 3 recovery rating to TransFirst’s $665 million first-lien term loan facility due 2021 and $50 million revolving credit facility due 2019.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to TransFirst’s $335 million second-lien facility due 2022. The 6 recovery rating indicates 0 to 10% expected default recovery.

The term loans and a $566 million common equity contribution, representing about 36% of total capitalization, will fund Vista Equity’s purchase of TransFirst from Welsh Carson, the agency said.

The outlook is stable.

The company’s weak business risk profile reflects its modest business position as a domestic merchant payment processor with about 1% share of U.S. card transactions in 2013 according to a Nilson report, S&P said.

The company’s strong client diversity, initiatives to achieve operating platform integration and investments in service quality partly offset its moderate market share, the agency said.

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