First Data launches extended term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Feb. 22 - First Data Corp. held a conference call at 2 p.m. ET on Wednesday to launch its amendment and extension request and is offering pricing of Libor plus 500 basis points on its proposed extended term loan debt, according to a market source.

The company is asking to extend at least $2.5 billion to all of its term loan due September 2014 into new dollar- and euro-denominated term loans due March 2017.

Non-extended pricing is Libor plus 275 bps.

In addition, the amendment would increase the amount of debt that the company can get under its incremental facility option, allow for the refinancing of any remaining 2014 loans at a later date and permit the replacement of the revolver due 2013 if it expires, the source said.

As a condition of the amendment, the company must issue senior secured notes in an amount to be determined and use the proceeds to prepay a portion of eligible 2017 term loans.

The bond deal will have a maximum size of $1 billion, the source remarked.

Lenders are being offered a 10 bps consent fee, and majority lender approval is needed for the amendment to pass.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are the current lead banks on the deal, "but [it's] highly likely that more will be added," the source added.

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services.

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