Conversely, pricing on Lehman Brothers' credit for TSI Telecommunication Services has been flexed 1/4% across the board, highlighting a market that can still be tough to some new issuance. Despite optimism based on the market being back to pre-Sept. 11 levels and a number of credits filling quickly, other bankers believe the paucity of new issuance is papering over a more cautious and reticent investor base. Pricing is now LIBOR plus 33/ 4% on the pro rata and LIBOR plus 41/ 4% on the "B" term loan. Call protection has been added at 102/101, a banker added.
The credit, which backs GTCR Golder Rauner's $800 million cash bid, received a Ba3 rating from Moody's Investors Service late last week, though it could not be ascertained how this would affect syndication. Officials at Lehman did not return calls. Comprising a $35 million revolver, a $100 million senior secured term loan "A" and a $200 million term loan "B", there is also a $245 million senior subordinated note offering. GTCR is providing $255 million of common and preferred equity to finance the purchase. Moody's believes TSI is in a solid position as a service provider to wireless carriers in the U.S.