Alliance Data Closes on New $1.6 Billion Credit Facility

Alliance Data Systems Corporation ADS today announced that the Company has completed a new credit facility. The new facility consists of a $792.5 million term loan and a $792.5 million revolving credit facility for a total of $1.585 billion, with the right to increase the aggregate principal amount for a total amount of $2.0 billion. The proceeds will be used to repay existing indebtedness and provide additional liquidity to fund acquisitions and other growth initiatives. The interest rate on the term of the loan starts at LIBOR plus 225 basis points, and will decline as the company's leverage ratio declines. The facility matures May 2016.