Western Union gets $575 million delayed-draw five-year term loan

By Angela McDaniels

Tacoma, Wash., April 13 – Western Union Co. entered into an agreement on Monday for a $575 million delayed-draw term loan due April 11, 2021, according to an 8-K filing with the Securities and Exchange Commission.

Western Union can draw term loans from time to time until Oct. 11.

The term loan has a $250 million accordion feature.

The interest rate is fixed for the term of each borrowing. Generally, the interest rate will be Libor plus 150 basis points. The margin may range from 112.5 bps to 200 bps depending on the company’s ratings.

The company must pay a commitment fee of 10 bps to 25 bps on the unused amount of the commitments quarterly until Oct. 11. The exact fee depends on the company’s ratings.

Western Union must make periodic amortization payments beginning after the second anniversary of the closing of the term loan agreement.

Western Union must to maintain compliance with a consolidated interest coverage ratio covenant.

The syndicate of lenders includes Bank of America, NA, Mizuho Bank (USA) and U.S. Bank NA as lenders, Mizuho Bank (USA) and U.S. Bank as syndication agents, Citizens Bank, NA, Fifth Third Bank, State Bank of India, New York and Barclays Bank plc as documentation agents, and Bank of America, NA, as administrative agent.

The proceeds of the term loans may be used for working capital and general corporate requirements, including to redeem, repay, purchase or refinance the company’s 5.93% notes due in October. No more than $450 million may be used for purposes other than redeeming, repaying, purchasing or refinancing the 5.93% notes.

The money movement and payment services company is based in Englewood, Colo.

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