VeriFone to pay remaining principal of second-lien term loan from newly unveiled IPO

By Ted A. Knutson

Washington, Jan. 11 - VeriFone Holdings, Inc. said it will pay the remaining $72 million in principal of an $82 million second-lien term loan issued in June with part of the proceeds from a just-announced initial public offering of common stock.

In addition to repaying the principal, the San Jose, Calif.-based electronic payments hardware and software vender is allocating $2.2 million for a pre-payment penalty.

As of Dec. 31, the second-lien term loan's interest rate was 8.56% based on Libor plus 700 basis points.

Credit Suisse and Banc of America were the lead banks on the debt. The loan was used to help redeem preferred stock, pay a special dividend to common stockholders, refinance previous debt and for working capital.

Credit Suisse First Boston and JPMorgan are the co-lead underwriters for the IPO which is expected to gross $230 million. The other underwriters are Goldman Sachs & Co., Lehman Brothers and Banc of America Securities LLC.

The announcement came in an S-1 filing with the Securities and Exchange Commission.

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