Bloomberg News

TNS Said to Get $400 Million in Loans to Refinance Buyout Debt

November 12, 2009

TNS Inc. (TNS:US), the provider of data communications to processors of credit-card payments, got $400 million in loans to refinance bank debt used to purchase VeriSign Inc. (VRSN:US)’s telecommunications unit, according to a person familiar with the transaction.

SunTrust Robinson Humphrey Inc. arranged a six-year, $325 million term loan and a five-year, $75 million revolving credit line, said the person, who declined to be identified because the terms are private.

Reston, Virginia-based TNS’s interest rate on both loans is 4 percentage points more than the London interbank offered rate, with a 2 percent Libor floor, the person said. Three-month Libor, a borrowing benchmark, was set at a record low 0.27 percent today.

The term loan was offered to lenders at a discount of 98.5 cents on the dollar, the person said, reducing TNS’s proceeds and increasing the yield for investors.

Chief Executive Officer Henry Graham didn’t return a message left at his office earlier today.

Standard & Poor’s LCD reported the transaction earlier today.

TNS is refinancing a $230 million term loan maturing March 2014 that had a spread of 6 percentage points over Libor, with a 3.5 percent minimum, according to data compiled by Bloomberg. The company will buy back the loan at a premium of 101 cents on the dollar, the person said.

To contact the reporter on this story: Emre Peker in New York at epeker2@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • VRSN
    (VeriSign Inc)
    • $57.13 USD
    • 0.87
    • 1.52%
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