Metris Companies Inc. announced that the Company has entered into a new credit facility to provide for a three-year $300 million secured term loan with a group of institutional investors.
The Company previously paid off its term loan facility that was due in June 2004 and will use the proceeds from this transaction to pay off its 10 percent Senior Notes due in November 2004. The balance of the net proceeds will be used for general corporate purposes.
The $300 million secured term loan will carry an annual interest rate of one-month LIBOR + 9.5 percent. Goldman, Sachs & Co., Banc of America Securities LLC and Deutsche Bank Securities were joint lead arrangers and RBC Capital Markets was the co-manager for the term loan.
The Company has elected to proceed with the $300 million secured term loan instead of its previously announced $250 million senior secured notes offering.
Metris Companies Inc., based in Minnetonka, Minn., is one of the largest bankcard issuers in the United States. The company issues credit cards through Direct Merchants Credit Card Bank, N.A., a wholly owned subsidiary headquartered in Phoenix, Ariz. For more information, visit [www.metriscompanies.com] or [www.directmerchantsbank.com].