Bread gets $700 million revolver, $575 million delayed-draw term loan

Chicago, June 8 – Bread Financial Holdings, Inc. (previously known as Alliance Data Systems Corp.) signed for a new $700 million revolving credit facility and a $575 million delayed-draw term loan on June 7, according to an 8-K filing with the Securities and Exchange Commission.

The company’s ability to borrow under either facility is conditional on the company obtaining at least $1.55 billion in proceeds from a revolving loan (which may include the $700 million revolver listed above), equity or equity-related securities (the company started an offer for convertible notes on Thursday morning) and unsecured debt securities before Sept. 5 with at least a $250 million principal amount on the capital market transactions. The company must fully repay its existing credit agreement with Wells Fargo Bank, NA from June 14, 2017 by Sept. 5 for the new credit agreement to take effect.

Interest on the new credit agreement will be SOFR plus CSA and then a margin of 175 basis points to 275 bps.

There is a $700 million accordion.

The maturity date will be three years from signing.

JPMorgan Chase Bank, NA is the administrative agent.

Bread Financial is a Columbus, Ohio-based marketing services provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.