Alliance Data seeks $1.1 billion term loan A at Libor plus 175 bps

By Sara Rosenberg

New York, Nov. 5 – Alliance Data Systems Corp. is in market with a $1.1 billion five-year incremental term loan A that is talked at Libor plus 175 basis points, according to a market source.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Fifth Third Securities Inc., RBC Capital Markets, BNP Paribas Securities Corp., Bank of Tokyo-Mitsubishi and Mizuho Securities USA Inc. are the lead banks on the deal that launched with a bank meeting on Tuesday.

Commitments are due on Nov. 18, the source added.

Proceeds will be used to help fund the acquisition of Conversant Inc. for a combination of cash and stock valued at about $2.3 billion, or $35.00 per Conversant share. The purchase price is structured to be paid with about 48% cash and 52% shares.

In addition, the company is looking to amend its credit facility to extend the maturity of its existing term loan and revolver to five years from July 2018.

Alliance Data is a Plano, Texas-based provider of direct marketing services.

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