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Payment processor First Data Corp. says it is losing 11.5% of a $2 billion revolving credit line because of the bankruptcy of Lehman Brothers Holdings Inc., a New York-based investment bank. In a U.S. Securities and Exchange Commission filing posted Friday, Greenwood Village, Colo.-based First Data says $230.6 million of its credit line came from a Lehman affiliate, and the banking firm has chosen not to provide the credit. First Data doubts it could replace that amount with loans from other banks. However, the processor says it has "sufficient other funding sources to meet our short-term and long-term liquidity needs." As of June 30, First Data said it had $655.3 million in cash reserves. In its first-quarter SEC filing, First Data said it expected to use $415 million of its revolving credit to help pay for the $980 million acquisition of Incomm, an Atlanta-based marketer and distributor of gift and prepaid cards (CardLine 4/28). In that same SEC document, First Data said it expected that deal to close by the end of the year.
