North American Bancard plans $300M add-on term loan for M&A; lender call Jan. 11

A Credit Suisse-led arranger group has scheduled a lender call for 10:30 a.m. ET on Jan. 11 to launch a $300 million incremental first-lien term loan for North American Bancard LLC to finance an acquisition, according to sources. Commitments are due by 5 p.m. ET on Jan. 18.

The add-on will be fungible with the existing covenant-lite first-lien term loan due November 2028 that is priced at 300 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 0.5% floor. There is a 25-basis-point margin step-down at 2.85x net senior secured leverage. The credit spread adjustment is 10 bps for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. The existing soft call protection is due to run through May 23.

NAB in November 2021 placed the existing $775 million term loan to refinance existing debt and fund a distribution to shareholders. In addition to the term loan, financing for the issuer also included a $125 million revolving credit facility due 2026.

Current corporate and first-lien facility ratings are B+/B1, with a 3 recovery rating on the loan from S&P Global Ratings. The borrower is NAB Holdings LLC.

Privately owned North American Bancard, based in Troy, Mich., provides merchant payment processing services for businesses.