First Data hopes Fiserv will take on the load

摘要

The credit outlook for debt-laden payment processing firm first data brightened on Wednesday on news it will merge with larger rival fiserv, which carries investment-grade ratings. First Data has been steadily tackling its debt burden, which ballooned after a US$27.5bn leveraged buyout led by private equity firm KKR in 2007 - one of the biggest LBOs in history. It became publicly traded again in 2015 as part of a turnaround plan, which also included a number of new debt issues to lower the cost of its borrowing, and the merger is likely to be another positive step forward from a credit standpoint.