By Paul A. Harris
St. Louis, Feb. 7 - WS Financing Corp., issuing in conjunction with Worldspan LP, priced a downsized and restructured $300 million issue of six-year senior secured second-lien floating-rate notes (B3/CCC+) at par to yield three-month Libor plus 625 basis points, according to market sources.
Price talk was Libor plus 575 to 600 basis points.
The issue size was decreased from $350 million, and call protection was increased to 1.5 years from one year.
JP Morgan, UBS Investment Bank, Lehman Brothers and Deutsche Bank Securities were joint bookrunners for the Rule 144A/Regulation S notes. Goldman Sachs & Co. was the co-manager.
The company will also obtain a $440 million senior credit facility.
Proceeds will be used to repay bank debt and redeem the company's 9 5/8% senior notes due 2011, to refinance senior secured debt, to redeem preferred stock issued by Worldspan's parent, Worldspan Technologies Inc., prepay and terminate sponsor advisory fees and dividends on Worldspan Technologies' class B common stock, and for general corporate purposes.
The sponsors are CVC Group and The Ontario Teachers' Pension Plan.
Worldspan is an Atlanta-based operator of computerized reservation systems.
| Issuer: | WS Financing Corp./Worldspan LP
|
| Amount: | $300 million (decreased from $350 million)
|
| Maturity: | Feb. 15, 2011
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| Security description: | Senior secured second-lien floating-rate notes
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| Bookrunners: | JP Morgan, UBS Investment Bank, Lehman Brothers, Deutsche Bank Securities
|
| Co-manager: | Goldman Sachs & Co.
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| Coupon: | Three-month Libor plus 625 basis points
|
| Price: | Par
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| Yield: | Three-month Libor plus 625 basis points
|
| Call protection: | Non-callable for 1.5 years (extended from one year), then at 103, 102, 101, par
|
| Equity clawback: | For 1.5 years at 105.0
|
| Trade date: | Feb. 7
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| Settlement date: | Feb. 11
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | Libor plus 575-600 basis points
|
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