Silver Lake Holding Mercury Payment Plans $225M Recap – LPC

Mercury Payment Systems has launched a $225 million senior secured credit facility on a call with investors, according to sister service, Thomson Reuters LPC, which tracks the loan market. The Deutsche Bank-led deal includes a $25 million, five-year revolving credit and a $200 million, six-year term loan B.

Proceeds are to fund $200 million dividend to Mercury’s financial sponsor Silver Lake Partners and shareholders. Silver Lake owns a roughly 62 percent stake in the company and the company’s founders hold 35 percent of the equity, the company said on the call.

Mercury Payment Systems is a transaction processing company providing point-of-sale systems to small businesses. Silver Lake bought its stake, for an undisclosed amount, in April 2010 from Financial Technology Partners LP and FTP Securities LLC

The term loan B is talked at LIB+475 with a 1.5 percent Libor floor and an OID of 99.5. The loan has 101 soft call in year one and amortizes at an annual rate of 1 percent.

The revolver is expected to be undrawn at close. The credit facility also has an accordion feature subject to a secured leverage ratio. And the deal is subject to maximum leverage and minimum interest coverage ratios. Commitments are due June 28.

Pro forma net leverage is 3.3x EBITDA. The loan will be subject to minimum interest coverage and maximum leverage tests as part of its covenant package.

(Leela Parker is a New York-based correspondent for Thomson Reuters LPC.)