URS Forced To Downsize Bonds

  • 18 Aug 2002
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URS scaled back its planned $250 million bond offering by $25 million as the market demanded a higher yield than expected. With price talk in the 12% range, Credit Suisse First Boston and Wells Fargo Bank were able to shift allocation to the "A" term loan of the accompanying bank deal, a banker said, adding that some covenants changed in the process. In addition, pricing reportedly was flexed up by an undisclosed amount on the $350 million "B" term loan, but this could not be confirmed. Pricing was set to open at LIBOR plus 31/ 2%. Calls to CSFB and Wells Fargo were not returned.

The "A" loan is now $125 million, while the $200 million revolver remains unchanged, according to the banker. The financing package backs URS' $500 million acquisition of EG&G Technical Services from The Carlyle Group and refinances $354 million in existing debt (LMW, 8/12).

The bank deal provoked positive reaction from most buysiders looking at the deal, although some expressed concerns. The asset-light nature of the business and the fact that competitor Washington Group International performed poorly in the bank market worried some investors. Furthermore, contracts are on a revenue-recognition basis, which means revenue can fluctuate heavily, one investor added. David Nelson, treasurer of URS, and Kent Ainsworth, cfo, did not return calls.

  • 18 Aug 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
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1 Citi 84,503.31 246 12.96%
2 Bank of America Merrill Lynch 71,587.85 220 10.98%
3 Wells Fargo Securities 65,360.43 206 10.03%
4 JPMorgan 46,548.88 148 7.14%
5 Credit Suisse 37,323.31 115 5.73%