URS Forced To Downsize Bonds

  • 18 Aug 2002
Email a colleague
Request a PDF

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) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 118,624.20 342 12.90%
2 Bank of America Merrill Lynch 99,769.11 286 10.85%
3 Wells Fargo Securities 87,449.35 261 9.51%
4 JPMorgan 67,955.87 206 7.39%
5 Credit Suisse 50,788.13 152 5.52%