Worldpay increases U.S. term loan B amount to $5.2 billion

By Sara Rosenberg

New York, Sept. 20 – Worldpay upsized its U.S. seven-year first-lien term loan B to $5.2 billion from a revised amount of $5 billion and an initial size of $3.4 billion, according to a market source.

Pricing on the U.S. term loan remained at SOFR plus 300 basis points with a 0.5% floor and an original issue discount of 99.5.

The company is still getting a €500 million seven-year first-lien term loan B priced at Euribor plus 325 bps with a 0% floor and a discount of 99.5.

Both term loans (Ba3/BB/BBB-) have 101 soft call protection for six months and ticking fees of half the spread from days 46 to 90 and the full spread thereafter.

Previously in syndication, pricing on the U.S. term loan was lowered from revised talk of SOFR plus 325 bps and initial talk in the range of SOFR plus 350 bps to 375 bps, a 25 bps step-down at 4x first-lien net leverage was removed and the discount was tightened from 99. Also, the euro term loan was downsized from $1 billion euro equivalent, pricing was lowered from talk in the range of Euribor plus 350 bps to 375 bps and the discount was revised from 98.5.

JPMorgan Chase Bank, Goldman Sachs, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., UBS Securities LLC, Fifth Third, BMO Capital Markets, MUFG, Citizens Bank, Stifel, Truist Securities, Capital One and Lloyds are the leads on the deal, with JPMorgan the left lead on the U.S. loan and Goldman the left lead on the euro loan. JPMorgan is the administrative agent.

Based on filings with the Securities and Exchange Commission, the company is also planning on getting a $1 billion revolving credit facility.

Proceeds will be used to help fund the acquisition by GTCR of a 55% stake in the company from Fidelity National Information Services Inc. (FIS) in a transaction that values the business at $18.5 billion. FIS will receive upfront net proceeds of about $11.7 billion and will retain the remaining 45% stake in the company.

Other funds for the transaction will come from $2.175 billion of senior secured notes, upsized from $2 billion, £600 million of senior secured notes, downsized from £700 million, and equity, which was downsized by $250 million.

Prior to the first term loans size change, the company was expected to get $4 billion equivalent of senior secured notes.

Closing is expected by the first quarter of 2024, subject to receipt of regulatory approvals and contractual consents.

Worldpay is a provider of payment processing solutions.

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