Bloomberg News

TNS Obtains $700 Million in Loans for Siris Capital Buyout

December 31, 2012

TNS Inc. (TNS:US), a maker of networking products, obtained commitments for $700 million of loans to back its $862 million buyout by Siris Capital Group.

SunTrust Banks Inc. (STI:US) and Macquarie Group Ltd. are arranging the financing, which includes a $550 million first-lien term loan, a $100 million second-lien term loan and a $50 million revolving line of credit, the company said today in a regulatory filing.

The first-lien term portion will pay interest at 4.25 percentage points more than the London interbank offered rate, while the second-lien piece will pay 8.25 percentage points more than Libor, according to the filing.

Siris, a private-equity firm, is acquired the Reston, Virginia-based company for $21 a share in cash, a 47 percent premium over the stock’s average price over the past month, according to a Dec. 11 statement. The deal is expected to close in the first quarter of 2013.

Steven Lipin, a spokesman for TNS, didn’t immediately respond to an e-mail seeking comment.

First-lien debt is repaid first in a bankruptcy or liquidation, second-lien borrowings are repaid next.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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