Alliance Data Systems: two 2012 deals in the market for $900 million

By Lisa Kerner

Charlotte, N.C., Dec. 4 - Alliance Data Systems Corp. had two unrated transactions in its first year in the market, and they both went well, said senior vice president and treasurer Robert Armiak during a presentation at the Bank of America Merrill Lynch 2012 Leveraged Finance Conference on Tuesday in Boca Raton, Fla.

In April, the company issued $500 million of eight-year notes with a 6 3/8% coupon. Proceeds were for outstanding revolver debt repayment and for general corporate purposes.

More recently in November, Alliance Data issued $400 million of 5¼% five-year notes to fund its pending acquisition of Hyper Marketing Inc. and for general corporate purposes.

Armiak provided an overview of the company's debt, noting that it intended to use cash to pay down an $800 million convertible due next year.

Total debt is about $2.8 billion, leverage is about 2.5 times, and market capitalization is "just over" $7.8 billion, said Armiak.

Cash and cash equivalents total about $1.2 billion on a pro forma basis.

Revenue is expected to be about $3.5 billion in 2012, up 13%, with free cash flow of about $600 million.

For 2012, core earnings should be up 26%, and adjusted EBITDA is expected to be about $1.2 billion, Armiak said.

Alliance Data Systems is a Dallas-based provider of marketing and loyalty services.

© 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.