First Data ups issue cap in exchange for 9 7/8%, 10.55% PIK notes

By Jennifer Chiou

New York, Dec. 6 - First Data Corp. said it increased the amount of notes it will issue in its private exchange offers for its $3.75 billion of 9 7/8% senior notes due 2015 and $3.71 billion of 10.55% senior payable-in-kind notes due 2015.

The company is offering new 8¼% senior second-lien notes due 2021, 8¾%/10% PIK toggle senior second-lien notes due 2022 and 12 5/8% senior notes due 2021. The maximum principal amount of new notes to be issued is now capped at $6 billion, up from $5.5 billion.

The early tender date was 5 p.m. ET on Dec. 1. The offer started on Nov. 18.

Holders who tendered by the early tender date will receive $500 principal amount of new 12 5/8% notes plus $500 principal amount of, at each holder's election, new 8¼% notes or new PIK toggle notes.

As already reported, the company will issue no more than $1 billion of the new PIK toggle notes, and it will not issue any new PIK toggle notes unless PIK toggle elections would result in the issuance of at least $500 million principal amount of these notes. If the minimum new PIK toggle amount is not met, holders electing to receive these notes will instead receive new 8¼% notes.

As of the early deadline, holders had tendered $3.167 billion of the 9 7/8% notes, of which $2.103 billion had the PIK toggle election, in addition to $3.236 billion of the 10.55% notes, of which $2.116 billion carried the PIK toggle election.

Holders who tender after the early tender date will receive $485 principal amount of new 12 5/8% notes plus $485 principal amount of new 8¼% notes.

The company will also pay accrued interest up to but excluding the settlement date.

The offers will end at midnight ET on Dec. 15.

If the principal amount of old notes tendered result in the issuance of more than $6 billion of new notes, notes will be accepted for exchange on a prorated basis, and holders who chose to receive PIK toggle notes will be given preference.

The company initially noted that the exchange offers are subject to the receipt of at least $3 billion principal amount of old notes. Neither exchange offer is conditioned on the completion of the other.

Global Bondholder Services Corp. (866 294-2200 or 212 430-3774) is the information agent.

First Data is an Atlanta-based provider of electronic commerce and payment services.

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