Total Merchant flexes $160 million term loan to Libor plus 550 bps

By Sara Rosenberg

New York, Dec. 2 – Total Merchant Services Inc. increased pricing on its $160 million first-lien term loan to Libor plus 550 basis points from Libor plus 500 bps, according to a market source.

Also, the maturity on the term loan was shortened to six years from seven years, and a leverage test of 2.5 times was added for restricted payments, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99, 101 soft call protection for one year and a maximum net leverage covenant.

The company’s $175 million credit facility (B2/B+) provides for a $15 million revolver as well.

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

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

Recommitments are due at 5 p.m. ET on Wednesday, the source added.

Total Merchant Services is a merchant acquirer for payment processing.

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