First Data Posts Narrower Q2 Loss

(Reuters) – First Data Corp, a privately held credit card processor, posted a narrower second-quarter loss as an alliance with Bank of America Merchant Services pushed up retail and alliance services segment revenue.

The company, which was bought by Kohlberg Kravis Roberts & Co. in 2007 in a $26 billion leveraged buyout, posted a second-quarter net loss of $122.2 million, compared with a loss of $193.6 million a year back.

Revenue rose 18 percent to $2.61 billion. Retail and alliance services segment revenue grew 13 percent to $854 million in the quarter.

Interest expense stood at $450.9 million, wiping out a small operating profit of $146.8 million and an income tax benefit of $122.4 million.

Last week, the company said it will seek to amend its credit agreements so that it can refinance and extend the maturities of its debt. 

First Data is one of a spate of buyout companies with massive amounts of debt coming due through 2015. The wall of maturities has raised fears of restructurings or defaults. (Reporting by Supantha Mukherjee in Bangalore; Editing by Don Sebastian)