Bloomberg News

First Data Sells $1.3 Billion Bonds in First New Issue This Year

August 03, 2012

First Data Corp., the credit-card processor owned by KKR & Co., sold $1.3 billion of secured debt, in its first new bond offering this year.

The 6.75 percent, eight-year securities priced to yield 568 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The securities are rated B1 by Moody’s Investors Service, and B+ by Standard & Poor’s.

Proceeds from the sale of the first-lien debentures, which increased from $750 million, will be used for general corporate purposes, according to a person familiar with the transaction, who asked not to be identified because the terms are private.

The company tapped the bond market in December with a $3 billion offering. Those 12.625 percent securities, due January 2021, traded at 102.3 cents on the dollar to yield 12.2 percent yesterday in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Deutsche Bank AG, Wells Fargo & Co., Citigroup Inc., Credit Suisse Group AG, HSBC Holdings Plc and SunTrust Banks Inc. (STI:US) managed the sale, Bloomberg data show.

To contact the reporter on this story: Matt Robinson in New York at

To contact the editor responsible for this story: Alan Goldstein at

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