By Paul A. Harris
St. Louis, Feb. 25 - Telcordia Technologies Inc. priced a downsized $300 million issue of eight-year senior subordinated notes (B3/B-) at par to yield 8 7/8%, according to a market source.
Price talk was in the 9% area.
Pricing on the transaction was moved up to Friday afternoon from Monday.
The Piscataway, N.J., telecommunications software company downsized the issue from $350 million and shifted $50 million to its term loan B.
JP Morgan, Bear Stearns & Co., Deutsche Bank Securities and Lehman Brothers were joint bookrunners for the Rule 144A with no registration rights notes.
Proceeds will be used to help fund Warburg Pincus and Providence Equity Partners' leveraged buyout of the company.
| Issuer: | Telcordia Technologies Inc.
|
| Amount: | $300 million (decreased from $350 million, $50 million shifted to term loan B)
|
| Maturity: | March 1, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | JP Morgan, Bear Stearns & Co., Deutsche Bank Securities, Lehman Brothers
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 471 basis points
|
| Call features: | Callable after March 1, 2008 at 104.438, 102.958, 101.479 and par on and after March 1, 2011
|
| Equity clawback: | Until March 1, 2008 for 35% at 108.875
|
| Trade date: | Feb. 25
|
| Settlement date: | March 9
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 9% area
|
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