By Paul A. Harris
St. Louis, March 11 - Telcordia Technologies Inc. repriced its $300 million of eight-year notes (B3/B-) at par to yield 10%, an increase of 112.5 basis points from the original 8 7/8% yield, according to market sources.
JP Morgan, Bear Stearns & Co., Deutsche Bank Securities and Lehman Brothers are joint bookrunners for the Rule 144A with registration rights notes.
The original deal, which originally priced on Feb. 25, was canceled on March 9 because of questions about the company's compliance with a "material adverse conditions" clause.
During a Thursday conference call, the company told investors that it found $20 million to $30 million of revenue shortfalls during the first quarter of 2005, caused by delayed closing of some $5 million to $10 million of software and equipment sales contracts. Hence, management and sponsors opted to delay closing on the deal.
The new settlement date is March 15.
Proceeds will be used to help fund Warburg Pincus' and Providence Equity Partners' leveraged buyout of the company.
Telcordia Technologies is a Piscataway, N.J., telecommunications software company.
| Issuer: | Telcordia Technologies Inc.
|
| Amount: | $300 million
|
| Maturity: | March 1, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | JP Morgan, Bear Stearns & Co., Deutsche Bank Securities, Lehman Brothers
|
| Coupon: | Repriced at 10% (original coupon 8 7/8%)
|
| Price: | Par
|
| Yield: | 10% (original yield 8 7/8%)
|
| Spread: | 556 basis points (original spread 471 basis points)
|
| Call features: | Callable after March 1, 2008 at 105.0, 102.50, par on and after March 1, 2010
|
| Equity clawback: | Until March 1, 2008 for 35% at 110.0
|
| Repricing date: | March 11
|
| Settlement date: | March 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
|
|
© 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.
