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(Updates with bank meeting in third paragraph.)
Nov. 14 (Bloomberg) -- VeriFone Systems Inc., the largest maker of credit-card terminals, obtained a $1.6 billion financing commitment to support its purchase of Swedish payment services provider Point.
JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Barclays Plc and Royal Bank of Canada are providing the loan, which will fund the acquisition and refinance $500 million of VeriFone’s debt, the company said today in a statement distributed by Business Wire.
VeriFone and its underwriters will host a bank meeting on Dec. 1 in New York, Victoria Brown, a spokeswoman for the San Jose, California-based company said in an e-mailed statement.
The loan will be due in five years and contains some amortization requirements, Douglas Bergeron, chief financial officer of VeriFone, said on a conference call today.
“It’s a variable rate term loan A with small term loan B if necessary,” Bergeron said on the call. “We expect to close the deal at the end of December and that our total cost of money will be less than 5 percent,” Bergeron said.
VeriFone is buying Stockholm-based Point from Nordic Capital Fund V and plans to extend its credit card terminal system.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks.
--Editors: Chapin Wright, Pierre Paulden
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