S&P assigns BB to First Data loans

S&P said it assigned its BB issue-level rating to First Data Corp.'s proposed $3.75 billion term loan and $1.25 billion revolving credit facility, both due in 2023.

The company will use the net proceeds to primarily refinance its term loan A due in 2020 and redeem a portion of the $3.4 billion senior unsecured notes due in 2023. S&P is also assigning a 2 recovery rating to the proposed debt, indicating an expectation for substantial recovery (70% - 90%; rounded estimate: 85%).

“We base the BB- issuer credit rating on First Data Corp. on the company's healthy business outlook, invigorated by recent acquisitions, growing free cash flow generation, and deleveraging trajectory over the next 12 months,” S&P said in a news release.

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