May 18, 2009 (FinancialWire) — Alliance Data Systems Corp. (NYSE: ADS) has completed a new term financing facility of $134 million. The new three-year facility, which the company said it fully funded, together with its existing revolver, increases Alliance’s corporate bank facilities to $884 million.

Alliance said it also has the option to upsize this term financing facility to $250 million in the next sixty days. The funding rate on the term of the loan is around 3.5 percent to 4.5 percent. Lead agents on the bank facility were BMO Capital Markets and SunTrust Robinson Humphrey. Agent banks included Bank of America, JP Morgan Chase Bank, and Barclays Bank.

Company treasurer Bob Armiak said, “We spent much of the last year securing liquidity for our private label business via FDIC-insured CDs, bank conduits and most recently the government’s Term Asset-Backed-Securities Loan Facility, or TALF program.”

He added, “Now turning to corporate liquidity, this new three-year term facility provides yet another source of liquidity and is incremental to our existing corporate debt sources, which includes privately placed bonds, convertible debt securities and our revolving credit facilities.”

Armiak said that the new sources of liquidity, along with “the significant free cash flow generated from operations,” will ensure that Alliance’s “needs for 2009 are met, including the repayment of $250 million in private placement debt.”

Dallas-based Alliance Data is a provider of loyalty and marketing solutions derived from transaction-rich data. The company manages customer relationships for North American brands. Alliance Data employs around 7,000 people at 50 locations worldwide.

Alliance Data is the parent company of Epsilon, a provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne, which owns and operates the Air Miles reward program, a Canadain coalition loyalty program.

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