Fitch lifts some First Data debt, rates new notes BB

Fitch Ratings said it affirmed First Data Corp.’s issuer default rating at B, along with the BB rating with recovery rating of RR1 on its senior secured revolving credit facility and term loans, BB rating with RR1 recovery rating on its senior secured notes, CCC+ rating with RR6 recovery rating on its senior unsecured notes and CCC rating with RR6 recovery rating to senior subordinated notes.

The agency also said it upgraded the company’s junior secured notes to B with recovery rating of RR4 from CCC+ with recovery rating of RR6.

The outlook remains positive.

The company will repay all or a portion of its outstanding senior secured term loans due 2017 with proceeds from incremental term loans. The term loans have the same primary leverage covenant as the revolving credit facility due in June 2020 and other similar ancillary covenants, Fitch said.

The agency also said it assigned a BB rating with recovery rating of RR1 to the company’s offering of $750 million senior secured first-lien notes due 2024.

Fitch also said it upgraded the ratings assigned to the company’s senior secured second-lien notes to B with recovery rating of RR4 from CCC+ with recovery rating of RR6 and has assigned a B with recovery rating of RR4 to the offering of $750 million senior secured second-lien notes due 2024.

The proceeds from the senior secured first- and second-lien note offerings will be used to redeem all $1 billion of the 8¾% senior secured second-lien notes due 2021 and a portion of the 8¼% senior secured second-lien notes due 2021.

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