Alliance Data amends, pushing out maturity on some term A borrowings

By Sara Rosenberg

New York, April 2 - Alliance Data Systems Corp. amended its credit facility, extending the maturity date of some of its term loan A by one year to May 24, 2017 and allowing for future extensions of the non-extended term loan, according to an 8-K filed with the Securities and Exchange Commission on Monday.

In addition, the company raised $125.5 in new term loan borrowings and upsized its revolver by $125 million, with the new debt priced at Libor plus 200 basis points.

The company obtained increased commitments from Bank of America, JPMorgan Chase Bank, Wells Fargo Bank, the Northern Trust Co. and Modern Bank and added Regions Bank and Fifth Third Bank to its bank group.

Proceeds were used to pay down revolver debt and are available for general corporate purposes.

The amendment was completed on March 30.

SunTrust Bank and Wells Fargo Bank are the co-administrative agents on the deal.

With the amendment, Wells Fargo replaced Bank of Montreal in the agent position.

"Our initial goal for 2012 was to increase liquidity to $1.5 billion by year-end via the continuation of our capital strategy of retaining free cash flow while also sourcing long-term stable funding as a liquidity cushion. Once we add in our expected free cash flow for this year, we are very confident that we will exceed our liquidity goal by year-end and are nicely on-track to bring our leverage ratio under 2x by the end of the year," said Charles Horn, chief financial officer, in a news release.

Alliance Data, based in Dallas, is a provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries.

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