North American Bancard cuts term loan spread to Libor plus 375 bps

By Sara Rosenberg

New York, May 15 - North American Bancard (NAB Holdings LLC) reduced pricing on its $200 million seven-year first-lien term loan to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99¼ from 99, the source said.

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

Along with the term loan changes, the company upsized its revolver to $25 million from $20 million, the source added.

Recommitments were due at 1 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are the lead banks on the now $225 million credit facility (B1/BB), up from $220 million.

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

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

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