Total Merchant to launch $175 million credit facility on Wednesday

By Sara Rosenberg

New York, Nov. 3 – Total Merchant Services Inc. is scheduled to hold a bank meeting at 12:30 p.m. ET on Wednesday to launch a $175 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $15 million revolver and a $160 million seven-year first-lien term loan, the source said.

The term loan is talked with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source continued.

Spread talk on the term loan is still to be determined.

Included in the term loan is a maximum net leverage covenant.

Proceeds will be used to refinance existing debt and fund a dividend.

Commitments are due at 5 p.m. ET on Nov. 19, the source added.

Total Merchant Services is a merchant acquirer for payment processing.

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