Comdata working $855M debt deal

On path to IPO, payment processor aims to retire some of parent's notes

Payment processor Comdata is looking to arrange debt financing of at least $855 million as part of a plan to retire early some of its parent company's debt ahead of a planned Comdata initial public offering.

Comdata and its parent company Ceridian said Wednesday they also have launched provisional tender offers for two series of Ceridian debt that are scheduled to expire next year. Those series have principal amounts outstanding of $765 million and $91 million and carry interest rates of 11.25 percent and between 12.25 and 13 percent, respectively. Comdata is looking to receive consents from bondholders by June 18 and will pay $1,007 per $1,000 of notes to those submitting their notes by June 4. After that, the company will pay $987 per $1,000 of principal amount.

Comdata executives early last month said they had filed a confidential draft stock registration statement with the Securities and Exchange Commission. Details about the scope and timing of any IPO have not been made public since.

For more details on Comdata's tender offers, click here.