Alliance Data Systems Corporation Announces Proposed Offering of $600 Million of Senior Notes

COLUMBUS, OH (STL.News) Alliance Data Systems Corporation (NYSE: ADS) (“Alliance Data”) announced today that it proposes to offer, subject to market conditions and other factors, $600.0 million aggregate principal amount of senior notes due 2024 (the “Notes”).  The Notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “Notes Offering”).  Alliance Data intends to use the net proceeds from the Notes Offering to repay a portion of the outstanding indebtedness under the term loans provided for in its existing credit agreement (the “Credit Agreement”).

The Notes will be general unsecured senior obligations of Alliance Data and will be guaranteed on a senior unsecured basis by each of its existing and future domestic subsidiaries that incurs or in any other manner becomes liable for any debt under Alliance Data’s domestic credit facilities, including the Credit Agreement.  The Notes will pay interest semi-annually.  The interest rate and other terms of the Notes are to be determined by negotiations between Alliance Data and the initial purchasers.

The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.  Alliance Data is under no obligation, and has no intention, to register the Notes under the Securities Act or any state securities laws in the future.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.