Vantiv completes $3.88 billion restated agreement in three tranches

By Wendy Van Sickle

Columbus, Ohio, Oct. 18 – Vantiv Inc. entered into a second amended and restated loan agreement on Friday providing for a $2,469,375,000 tranche A term loan, a $765 million tranche B term loan and a $650 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The tranche A term loan and revolver mature in October 2021, and the tranche B term loan matures in October 2023.

The revolver has a $100 million sublimit for swingline loans and a $40 million sublimit for letters of credit.

The applicable margin above Libor for the tranche A term loan and the revolver is initially 200 basis points and can range, depending on leverage, from 125 bps to 200 bps.

The applicable margin for the tranche B term loan is 250 bps with 0.75% Libor floor.

JPMorgan Chase Bank, NA and BofA Merrill Lynch are the joint lead arrangers and are joined as joint bookrunners by Fifth Third Bank, Morgan Stanley MUFG Loan Partners, LLC and RBC Capital Markets LLC.

JPMorgan Chase is the administrative agent. Capital One, NA, Compass Bank, Credit Suisse AG, Mizuho Bank, Ltd. and Sumitomo Mitsui Bank Corp. are the co-documentation agents, and Bank of America, NA, Fifth Third, Morgan Stanley MUFG and Royal Bank of Canada are the co-syndication agents.

The tranche A term loan amortizes in 1.25% quarterly installments for the first three years, 1.875% installments per quarter during the fourth year and 2.5% quarterly installments thereafter, with a balloon payment at maturity. The tranche B term loan amortizes in installments of 0.25% per quarter, with a balloon payment at maturity.

If Vantiv is in compliance with certain leverage ratios, it may add up to $650 million in incremental term loans.

Vantiv must maintain a maximum leverage ratio and a minimum interest coverage ratio, each of which will be tested quarterly based on the last four fiscal quarters, commencing on Sept. 30. The maximum leverage ratio starts at 6.25 times and becomes more restrictive over time. The minimum interest coverage ratio is 4 times.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Vantiv is a Symmes Township, Ohio-based provider of payment processing services and related technology solutions for merchants and financial institutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.