November 15, 2017 / 1:01 PM / 9 months ago

LPC-Details emerge on Paysafe’s jumbo buyout loan

LONDON, Nov 15 (Reuters) - Pricing and structure has emerged on a US$2.59bn covenant-lite leveraged loan financing backing the buyout of UK payment processing company Paysafe, banking sources said.

Paysafe, formerly Optimal Payments, which offers pre-paid cashcards and online wallets, announced in August that it had backed a £3bn takeover offer from a consortium of funds managed by Blackstone and CVC.

Credit Suisse is leading the financing, alongside Jefferies, Morgan Stanley, BMO and Deutsche Bank. Blackstone is a co-manager.

The financing comprises a US$957.5m-equivalent euro-denominated term loan and a US$957.5 term loan, both maturing in seven years and paying 350bp over Euribor/Libor, at 99.5 OID.

There is also a US$250m-equivalent euro-denominated second-lien loan and a US$250m second-lien loan, both maturing in eight years and paying 700bp over Euribor and 725bp over Libor, respectively at 99 OID.

The euro loans are offered with a 0% floor, while the dollar loans come with a 1% floor.

The first-lien loans are offered with 101 soft-call for six months and the second-liens are offered at 102, 101, par.

Corporate ratings are B2/B, first-lien ratings are B1/B and second-lien ratings are Caa1/CCC+.

A US$175m six-year multicurrency revolving credit facility rounds out the financing.

Blackstone and CVC initially approached Paysafe in early May and made four separate bids before the fifth offer was agreed. (Editing by Christopher Mangham)

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