Payment processor Comdata is seeking to raise $855 million in debt financing as part of a plan to retire some of its parent company's debt ahead of the Comdata initial public offering.
Comdata and parent Ceridian announced they have proposed provisional tender offers for two series of Ceridian notes, including a series of toggle notes, scheduled to expire next year.
The outstanding notes have principal amounts remaining of $765 million and $91 million and carry interest rates of 11.25 percent and between 12.25 and 13 percent.
Comdata hopes to pay $1,007 per $1,000 of notes to those submitting notes by June 4. After that, the company will pay $987 per $1,000 in principal.
Comdata, which provides fleet fuel cards, announced in early April it would file for the public offering.