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First Data begins exchange offers for 9 7/8% notes, 10.55% PIK notes
By Angela McDaniels
Tacoma, Wash., Nov. 18 - First Data Corp. began private exchange offers for its $3.75 billion of 9 7/8% senior notes due 2015 and $3.71 billion of 10.55% senior payable-in-kind notes due 2015, according to a company news release.
The company is offering new 8¼% senior second-lien notes due 2021, 8¾%/10% PIK toggle senior second-lien notes due 2022 and 12 5/8% senior notes due 2021. The maximum principal amount of new notes to be issued is capped at $5.5 billion.
Holders who tender by the early tender date will receive $500 principal amount of new 12 5/8% notes plus $500 principal amount of, at each holder's election, new 8¼% notes or new PIK toggle notes.
The company will issue no more than $1 billion of the new PIK toggle notes, and it will not issue any new PIK toggle notes unless PIK toggle elections would result in the issuance of at least $500 million principal amount of these notes. If the minimum new PIK toggle amount is not met, holders electing to receive these notes will instead receive new 8¼% notes.
Holders who tender after the early tender date will receive $485 principal amount of new 12 5/8% notes plus $485 principal amount of new 8¼% notes.
The company will also pay accrued interest up to but excluding the settlement date.
The early tender date is 5 p.m. ET on Dec. 1, and the offers will end at midnight ET on Dec. 15.
If the principal amount of old notes tendered would result in the issuance of more than $5.5 billion of new notes, notes will be accepted for exchange on a prorated basis, and holders who chose to receive PIK toggle notes will be given preference.
The exchange offers are subject to the receipt of at least $3 billion principal amount of old notes. Neither exchange offer is conditioned on the completion of the other.
Global Bondholder Services Corp. (866 294-2200 or 212 430-3774) is the information agent.
First Data is an Atlanta-based provider of electronic commerce and payment services.
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