WorldPay Secures Billion-Dollar Loan, Puts U.S. Business on the Block

April 15, 2013

London-based processor WorldPay has secured a billion-dollar loan that will be used in part to pay a dividend to the company’s private-equity owners. At the same time, the company said it has received permission from lenders to look for a buyer for its U.S. division, which accounts for a third of its total business.

WorldPay raised the loan in pounds, euros and dollars. A bit less than half the total will be used to fund the dividends and the balance will be used to repay a mezzanine loan that backed the private-equity buyout of WorldPay in 2010.

The company’s board agreed to explore a sale of the U.S. division in March. Permission from lenders enables WorldPay to leverage its successful turnaround after its separation from Royal Bank of Scotland and continue seeking a buyer for the U.S. business.