Global Payments Inc. has set up some of the financing for its pending purchase of a majority stake in HSBC Holdings PLC's merchant acquiring operations.
The Atlanta company said Wednesday that it has completed a $200 million, five-year loan arrangement from a group of financial companies. It had said last week that it would pay $439 million for 51% of HSBC's U.K. acquiring unit.
The two companies are forming a joint venture to focus on merchant acquiring in Europe.
Global Payments plans to pay for the rest of the purchase with cash on hand and $45 million from an existing $350 million line of credit.
Joseph C. Hyde, the company's chief financial officer, said in a press release that this arrangement "preserves the vast majority of our $35 million revolving credit facility to fund future strategic acquisitions and other growth objectives."
