NEW YORK, NOVEMBER 5, 2015 – First Data Corporation (“First Data”) (NYSE: FDC) today announced that it has priced an offering of $1.0 billion aggregate principal amount of 5.000% senior secured first lien notes due 2024 and $2.2 billion aggregate principal amount of 5.750% senior secured second lien notes due 2024 (together, the “Notes”). The offering is expected to close on November 25, 2015, subject to customary closing conditions.
First Data intends to use the proceeds from the offering of the Notes to redeem all outstanding amount of its 8.75% senior secured second lien notes due 2022 and all outstanding amount of its 8.25% senior secured second lien notes due 2021, and to pay any applicable premiums and related fees and expenses. The offering of the Notes is part of a refinancing transaction that includes replacing First Data’s $1.5 billion senior secured term loan facility due March 2017 with incremental term loans of $1.25 billion and €200 million (estimated at $223 million equivalent) issued under its existing senior secured term loan facility due July 2022.
The refinancing announced today is expected to result in an additional reduction of annualized interest expense of $72 million over and above interest savings resulting from the debt principal paydowns executed with the proceeds of the initial public offering and the debt refinancing related to the issuance of $3.4 billion aggregate principal amount of 7.000% senior notes due 2023 that was announced last week. Upon consummation of these transactions, First Data will not have any significant debt maturities until March 2018.
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This press release includes certain disclosures which contain “forward-looking statements.” You can identify forward-looking statements because they contain words such as “believes” and “expects.” Forward-looking statements are based on First Data’s current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our filings with the U.S. Securities and Exchange Commission, including our registration statement on Form S-1, as amended (File No. 333-205750), under the caption “Risk Factors.”