Titan to hold bank meeting April 17 for $450 million credit facility via Wachovia

By Sara Rosenberg

New York, April 12 - Titan Corp., a San Diego, Calif. technology company, is scheduled to hold a bank meeting on April 17 for a $450 million senior secured credit facility. Wachovia is bookrunner and lead arranger for the transaction.

The loan consists of a $350 million seven-year term B tranche with an interest rate of Libor plus 325 basis points and a $100 million six-year revolver with an interest rate of Libor plus 225 basis points, according to a syndicate source. The unused fee ranges from 50 to 100 basis points depending on amounts drawn. If less than 30% of the revolver is used, the company has to pay a commitment fee of 100 basis points, the syndicate source said.

Substantially all of the company's assets are being used to secure the loan, excluding SureBeam, the syndicate source said.

The credit facility is principally a refinancing of the previous loan. According to the syndicate source, Moody's Investors Service rates the loan Ba3 and Standard and Poor's rates the loan BB-.

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