Alliance Data amends and restates revolver, loan with Wells Fargo as agent

Chicago, July 14 – Alliance Data Systems Corp. announced the seventh amendment and restatement of its credit facility that lists Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The loan was amended on Friday.

Borrowings bear interest at Libor plus a margin between 137.5 basis points to 200 bps. The commitment fee ranges from 20 bps to 35 bps, based on the daily unused revolving commitments. The pricing level depends on the ratio of the consolidated tangible net worth to the consolidated total assets minus the sum of intangible assets and goodwill. The method of determination for the rate has been changed as part of the amendment.

The maturity date on the revolving loans and approximately 86% of the term loans has been extended to July 1, 2024 from Dec. 31, 2022.

Additionally, the amendment provides consent by the lenders for the spin-off or sale of the company’s LoyaltyOne business in one or more transactions.

The amendment also requires a prepayment of certain of the loans in an amount equal to the net proceeds from any such divestiture, including any net proceeds from debt that is distributed to the company.

Also, Lon Inc. and Lon Operations LLC were added as additional guarantors.

Joint lead arrangers and joint bookrunners are Wells Fargo Securities, LLC, BofA Securities, Inc., Canadian Imperial Bank of Commerce, Citizens Bank, NA, JPMorgan Chase Bank, NA, Keybanc Capital Markets, Inc., MUFG Bank, Ltd. Bank of Nova Scotia, Truist Securities, Inc., Fifth Third Bank, RBC Capital Markets, Mizuho Bank, Ltd., BNP Paribas Securities Corp., Regions Capital Markets and U.S. Bank NA.

Co-syndication agents are Bank of America, NA, Canadian Imperial Bank of Commerce, New York Agency, Citizens Bank, NA, JPMorgan Chase Bank, NA, Keybank, NA, MUFG Bank, Ltd., Bank of Nova Scotia and Truist Bank.

Co-documentation agents are Fifth Third Bank, NA, Royal Bank of Canada, Mizuho Bank, Ltd., BNP Paribas, Regions Bank and U.S. Bank NA.

Alliance Data Systems is a Columbus, Ohio-based marketing services provider.

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