JPMorgan Chase & Co. has established a price target for a $500 million term loan it's marketing to institutional investors that Lender Processing Services Inc. will use to refinance debt.
The bank is aiming to price the seven-year loan to yield 300 to 350 basis points above the London interbank offered rate at 99 cents on the dollar, sources said. Commitments are due Aug. 9.
The loan is part of a $1.3 billion credit facility that also includes a $400 million revolving credit line and a $350 million, five-year term loan being syndicated to other banks.
Proceeds from the new debt will be used to repay a $1.35 billion facility that Lender Processing obtained in July 2008. Last week the mortgage services provider said the new facility would enhance liquidity, extend maturities and provide more flexibility under the covenants.
