S&P puts TNS on negative watch

Standard & Poor's said it placed TNS Inc.'s BB- corporate credit and senior secured debt ratings on CreditWatch with negative implications following the announcement that TNS received a nonbinding proposal from members of senior management to acquire the outstanding shares of TNS for a cash price of $22.00 per share, or roughly $500 million. The board of directors has established a special committee to evaluate this proposal.

The CreditWatch listing reflects uncertainty surrounding the financing plans should this acquisition occur, the agency said. While the terms of the acquisition are not currently known, S&P said operating lease-adjusted leverage would likely increase substantially from current levels in the low 2x area.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.