Global Payments as lender in connection with seller financing in the form of a $50 million first lien revolving credit facility, $350 million first lien term loan facility and $325 million second lien term loan facility related to the sale of its NetSpend consumer business
On April 26th, 2023, Global Payments completed the sale of the consumer division of its Netspend business for approximately $1 billion, subject to final closing adjustments.
As part of the sale, Global Payments offered seller financing that consisted of a first-lien, seven-year secured term loan facility with an aggregate principal amount of $350 million, bearing interest at a fixed annual rate of 9%. They also provided a second-lien, twenty-five year secured term loan facility with an aggregate principal amount of $325 million, bearing interest at a fixed annual rate of 13%. Additionally, they furnished the purchasers with a first-lien, five-year, $50 million secured revolving facility that was available from the closing date of the sale.
Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Global Payments.