Vantiv sets Thursday launch for about $1.92 billion of new bank debt

By Sara Rosenberg

New York, May 19 - Vantiv Inc. scheduled a bank meeting for Thursday to launch its $1,919,000,000 of new bank debt, according to a market source.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

The debt consists of a $250 million add-on five-year revolver, a $669 million add-on five-year term loan A and a $1 billion seven-year term loan B.

The revolver and term loan A are talked at Libor plus 200 basis points, and the term loan B is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor and an original issue discount of 991/2, the source said.

Included in the term loan B is 101 soft call protection for six months.

The company recently said in an 8-K filed with the Securities and Exchange Commission that it also plans on amending its credit facility to extend the maturity on its existing $1,781,000,000 term loan A and $250 million revolver to five years from the closing of the acquisition, revise term loan A and revolver pricing, and modify the amortization on the term loan A.

Proceeds from the new debt will be used to fund the acquisition of Mercury Payment Systems LLC from Silver Lake for $1.65 billion.

Closing is expected this quarter, subject to required U.S. antitrust clearance and other customary conditions.

Pro forma leverage at close will be around 4.6 times.

The company expects that its strong free cash flow generation will support delivering of up to 1 times annually.

Vantiv is a Symmes Township, Ohio-based payment processor. Mercury Payment Systems is a Durango, Colo.-based payment technology company.

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