Lender Processing sets Thursday launch for $1.3 billion facility

By Sara Rosenberg

New York, July 26 - Lender Processing Services Inc. has scheduled a bank meeting for 10 a.m. ET on Thursday in New York to launch its proposed $1.3 billion senior secured credit facility, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

The facility consists of a $400 million five-year revolver, a $350 million five-year term loan A and a $550 million seven-year term loan B, with price talk not yet available.

Proceeds will be used to refinance existing debt, including an existing senior secured credit facility, and for general corporate purposes.

Company officials said in a conference call on Tuesday that it expects the refinancing to increase its average interest rate by 100 basis points to 200 bps.

The credit facility is also expected to enhance liquidity, extend maturities and provide more flexibility under covenants.

Closing is expected in August, subject to market and other customary conditions.

Lender Processing Services is a Jacksonville, Fla.-based provider of integrated technology, services and loan performance data and analytics to the mortgage, consumer lending, capital markets and real estate industries.

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