TNS, Inc. (“TNS”) (NYSE: TNS) announced today that it has completed a refinancing of its existing senior secured credit facilities.
The new senior secured credit facilities are comprised of a fully funded $350 million five-year term loan and a $100 million, five-year revolving credit facility, under which $25 million was drawn at closing. The interest rate at closing on the new facilities is LIBOR plus 300 bps, compared to LIBOR plus 400 bps (with a 200 bps LIBOR floor) on the existing facilities. The interest rate is subject to a leverage based pricing grid. The other terms of the new senior secured credit facilities are substantially similar to those of the existing facilities. The company has used the proceeds from the new senior secured credit facilities to repay all amounts outstanding under the existing facilities, under which there was $373 million outstanding, as well as to pay fees and expenses associated with the new senior secured credit facilities of approximately $7 million.
SunTrust Robinson Humphrey, Inc. and Bank of America Merrill Lynch, at the Company’s direction, acted as joint lead arrangers for the new credit facility.
Dennis L. Randolph, Jr., Executive Vice President and CFO, commented, “Given our continued strong operating cash flow generation, TNS opportunistically conducted this refinancing to lock in prevailing low interest rates. The terms of the new facility are substantially similar to the previous and extend the maturity of the facility to 2017. We remain focused on pursuing our investment and growth initiatives with even greater financial flexibility.”About TNS Transaction Network Services (TNS) is a leading global provider of data communications and interoperability solutions. TNS offers a broad range of networks and innovative value-added services which enable transactions and the exchange of information in diverse industries such as retail, banking, payment processing, telecommunications and the financial markets.