WorldPay Gets US$1.08 Billion Loan Equivalent

By Marc Castro

Apr 13, 2013 09:23 AM EDT

WorldPay, the payment processing company from Great Britain, has announced the success in its raising of a GBP700 million or US$1.08 billion loan equivalent. The funds would be used to pay a dividend to private equity owners.

The recipients of the dividend have also received permission to sell World Pay's US business interests. About GBP340 million would be used to pay the dividends while the rest is to pay for a mezzanine loan.

The process is called dividend recapitalization and was overseen by Goldman Sachs, Morgan Stanley and RBS. Dividend recapitalization involves the additionof more debt added to the existing borrowings of the company and a dividend is paid out from the funds raised.

Of the loan equivalent, a part was in GBP250 million in pounds sterling, another GBP137.5 million was in euros while the last part of roughly GBP312.5 million was raised in US dollars.

The loan matures in 2019 and this is one medium that has proven effective for investors to put their cash to earn because of the thin market in debt instruments for the year.

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