Davis Polk advised the lead arranger in connection with a $330 million senior secured first-lien term loan facility and a $20 million senior secured first-lien revolving loan facility provided to iPayment, Inc. Concurrently with the entry into the credit facilities, Davis Polk also advised the initial purchaser in a Rule 144A offering by iPayment of $175 million principal amount of its 10.75% second-lien senior secured notes due 2024.

The proceeds of the term loan facility, together with the proceeds from the notes, were used in connection with a comprehensive refinancing of iPayment’s existing debt and a concurrent tender offer for common stock of iPayment.

Based in Westlake Village, California, iPayment is a provider of credit and debit card payment processing services to small merchants across the United States, which enables small merchants to accept credit cards from Visa, MasterCard, American Express, Discover and Diners Club as well as other forms of electronic payments, including debit cards, checks, gift cards and loyalty programs.

The Davis Polk credit team included partner Meyer C. Dworkin and associates Scott M. Herrig and Phoebe Jin. The capital markets team included partners Michael Kaplan and Stephen Salmon, counsel Marcel Fausten and associates Connie Y. Lam, Eugene Baek and Amy Tu. Partner Rachel D. Kleinberg provided tax advice. Members of the Davis Polk team are based in the New York and Northern California offices.

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