Alliance Data Systems closes on $134 million unsecured term loan

By Sara Rosenberg

New York, May 18 - Alliance Data Systems Corp. successfully completed its $134 million unsecured term loan due March 30, 2012, according to an 8-K filed with the Securities and Exchange Commission on Monday.

BMO Capital Markets and SunTrust acted as the co-lead arrangers and bookrunners on the deal that closed on May 15, with BMO the administrative agent.

Pricing on the loan is initially set at Libor plus 300 basis points. There are step ups to Libor plus 350 bps and Libor plus 400 bps based on leverage.

There is a $116 million accordion feature exercisable within the next 60 days.

Financial covenants include total leverage and senior leverage and a minimum ratio of consolidated operating EBITDA to consolidated interest expense.

Proceeds were used to repay the company's $250 million series A senior notes that matured on May 16.

Alliance Data is a Dallas-based provider of data-driven and transaction-based marketing and customer loyalty services.

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