Alliance Data Systems increases accordion feature by $500 million

By Angela McDaniels

Tacoma, Wash., Sept. 23 - Alliance Data Systems Corp. increased the accordion feature of its credit facility to allow a maximum total facility size of $2.5 billion, up from $2 billion.

The amendment was made on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The $1.59 billion credit facility includes a $792.5 million term loan and a $792.5 million revolver. The initial size of the accordion feature was $415 million.

The amendment also

• Allows any incremental term loans to be secured in whatever collateral the company and the lenders agree on. The existing loans will be equally secured in the same collateral;

• Requires that incremental term loans may not have terms and conditions that are materially different from those of the existing loans, except with respect to amortization and pricing; and

• Allows the co-administrative agents, the company and the lenders advancing the incremental term loans to amend the credit agreement, without further consent of any other lenders, as needed to allow the issuance of the incremental term loans.

SunTrust Bank and Bank of Montreal are the co-administrative agents.

Plano, Texas-based Alliance Data Systems provides marketing and customer loyalty services.

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