Alliance Data Systems Corporation, a leading provider of loyalty and marketing solutions derived from transaction-rich data, announced that the company completed a new $2.285 billion credit facility.
The new facility consists of a $1,142.5 million term loan and a $1,142.5 million revolving credit facility for a total of $2.285 billion. In addition, the facility includes an uncommitted accordion feature of up to $500.0 million (or, in certain circumstances, up to $615.0 million) in the aggregate allowing for future incremental borrowings, subject to certain conditions. The proceeds will be used to finance general corporate and working capital needs, including the refinancing of existing indebtedness and the financing of acquisitions and other growth initiatives. The interest rate on the term loan is variable with a slight improvement in rate from previous deals. The facility matures July 2018.
Lead agents on the bank facility were Merrill Lynch, Pierce, Fenner & Smith, Wells Fargo Securities, SunTrust Robinson Humphrey, J.P. Morgan Securities, Fifth Third Bank, and RBC Capital Markets.
Charles Horn, chief financial officer of Alliance Data, said, "We are very pleased to have completed the largest financing transaction for the Company to date, which significantly increases our corporate liquidity and provides us with greater financial flexibility to support our growth plans over the coming years. Together with our strong free cash flow generation, this ensures our ability to satisfy upcoming debt maturities over the next 12 months while maintaining an ample liquidity position to execute a range of opportunities including reasonably priced acquisitions, share repurchases and further deleveraging. Based on current market conditions, we plan to focus primarily on paying down debt and maintaining liquidity."
About Alliance Data Alliance Datac and its combined businesses is North America's largest and most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands.
Alliance Data consists of three businesses: Alliance Data Retail Services, a leading provider of marketing-driven credit solutions; Epsilon, a leading provider of multichannel, data-driven technologies and marketing services; and LoyaltyOne, which owns and operates the AIR MILES Reward Program, Canada's premier coalition loyalty program.