Lehman Brothers is reshopping an overhauled credit for TSI Telecommunications Services with new pricing and a combined term "A" and "B" loan, after a tough reception by investors. The $100 million senior secured term loan "A" and $200 million term loan "B" will be priced at LIBOR plus 4 1/2 %-- a 1% hike on the original spread. The spread on the $35 million revolver has also been raised to 4 1/2 % said a banker. A $245 million bond offering has been completed, but pricing could not be ascertained, added the banker. Call protection was added in at 102/101 during the first tweaking last month, a rework that also included a price flexing (LMW, 1/21). Lehman bankers did not return repeated calls.
Rival bankers said the problem selling the loan is not surprising, considering the aggressive financing Lehman was rumored to have offered GTCR Golder Rauner, the private equity firm purchasing TSI (LMW, 12/17). "The deal is overleveraged," one banker stated. The credit, which backs an $800 million cash purchase, received a Ba3 rating from Moody's Investors Service and a B+ rating from Standard & Poor's.