Titan Shaves Pricing

The Titan Corp., a provider of national security solutions, has opportunistically reduced the interest rate on its $345 million "B" loan from LIBOR plus 3 1/4% to LIBOR plus 2 3/4%.

  • 10 Sep 2004
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The Titan Corp., a provider of national security solutions, has opportunistically reduced the interest rate on its $345 million "B" loan from LIBOR plus 3 1/4% to LIBOR plus 2 3/4%. "You see the trends in the market and you see that it is possible that we can lower our rates and we took the initiative to do it," explained Gene Ray, Titan's president and ceo. "We're looking to increase our shareholder value. If we pay less interest it means we bring more profits to the bottom line."

All of the existing lenders rolled over, but call protection of 101 was added with the amendment. "We had a 100% vote but of course you negotiate those things and that was part of what we were able to negotiate," Ray said. Wachovia Securities is the lead arranger and administration agent.

The spread can go up or down 25 basis points if the ratings change. If the Standard & Poor's rating is B+ or lower and the Moody's Investors Service rating is B1 or lower the term loan will be priced at LIBOR plus 3%. If the borrower's debt rating is BB- though from S&P without a rating watch of "negative outlook" and Ba3 from Moody's Investors Service without a rating watch of "watch-possible downgrade" then the term loan will carry a spread of LIBOR plus 2 1/2%.

The Bank of Nova Scotia and Comerica Bank serve as syndication agents. Branch Banking and Trust and Toronto Dominion are documentation agents. The credit also includes a $135 million revolver that is priced on a grid tied to leverage ranging from LIBOR plus 2-2 3/4%.

  • 10 Sep 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 5,997 17 15.40
2 Citi 4,679 16 12.02
3 Lloyds Bank 3,158 6 8.11
4 Bank of America Merrill Lynch (BAML) 3,104 10 7.97
5 Morgan Stanley 3,066 8 7.88

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 69,310.90 231 10.40%
2 JPMorgan 64,579.62 197 9.69%
3 Wells Fargo Securities 51,322.59 157 7.70%
4 Bank of America Merrill Lynch 50,413.91 166 7.56%
5 Credit Suisse 47,114.03 149 7.07%