Research Update: Total System Services Inc. 'BBB-' Ratings Affirmed; New Unsecured Notes Assigned 'BBB-' Rating; Outlook Stable

U.S. electronic payment processing services provider Total System Services Inc. (TSYS) is issuing a series of unsecured notes. The company intends to use the net proceeds to repay all of its existing 2.375% 2018 senior notes at maturity, the remaining balance under the two-year 2018 term loan, and a portion of the outstanding balance under its revolver. We are affirming all our ratings on TSYS at 'BBB-' and assigning our 'BBB-' rating to the new unsecured notes. The stable outlook reflects our expectation that consistent organic revenue growth and stable EBITDA margins will support deleveraging to below 3x over the next two years. On May 9 2018, S&P Global Ratings affirmed its 'BBB-' ratings on Total System Services Inc. The

...+ U.S. electronic payment processing services provider Total System Services Inc. (TSYS) is issuing a series of unsecured notes. + The company intends to use the net proceeds to repay all of its existing 2.375% 2018 senior notes at maturity, the remaining balance under the two-year 2018 term loan, and a portion of the outstanding balance under its revolver. + We are affirming all our ratings on TSYS at '###-' and assigning our '###-' rating to the new unsecured notes. + The stable outlook reflects our expectation that consistent organic revenue growth and stable EBITDA margins will support deleveraging to below 3x over the next two years....

Research Update