The $175 million "B" term loan led by BNP Paribas and Lehman Brothers for CSG Systems International blew out last week after launching on Feb. 6. A banker said the "B" tranche satisfies current market needs for large-sized deals within a defensive sector. The "B" is part of a $400 million secured facility backing the acquisition of the billing and customer care assets of Lucent Technologies, known as Kenan Systems (LMW, 1/28).
The $225 million pro rata consists of a $100 million five-year revolver and a $175 million five-year "A" term loan. No decision has been made to flex pricing or adjust the structure, said the banker, while the pro rata is still being shopped. Pricing could not be ascertained. Moody's Investors Service rated the credit Ba2, noting the positive expectation that CSG can turnaround the acquired Kenan Systems business. The company lost 80% of its value since Lucent acquired it in 1999 (LMW, 2/11).