By Paul A. Harris
St. Louis, Mo., Sept. 27 - GXS Corp. priced a Rule 144A offering of $235 million senior subordinated reset notes due Sept. 27, 2009 (B2/B) at par with an initial coupon of 12%, a syndicate source told Prospect News on Friday.
The interest rate will be permanently reset on Sept. 27, 2003 at a "Par Value Rate" that will equate to a par price. According to a previous release by Moody's Investors Service, the new rate will be between 8%-17%.
Proceeds will be used to help fund the buyout of the company by Francisco Partners, which announced the completion of the acquisition of GE Global eXchange Services in a Friday press release.
"GE retains a 10% interest in GXS and has provided GXS with $235 million of senior subordinated notes through GE Capital Corporation," the Friday release stated. "GE will recognize an after-tax gain of approximately $300 million in the third quarter as a result of the transaction, which values GXS at approximately $800 million."
Global eXchange Services operates business-to-business e-commerce networks. The company is headquartered in Menlo Park, California and Fairfield, Connecticut.
Issuer: GXS Corp.
| Amount: | $235 million
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| Maturity: | Sept. 27, 2009
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| Type: | Senior subordinated reset notes
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| Manager: | Credit Suisse First Boston
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| Initial coupon: | 12% (Resets on Sept. 27, 2003 at level to provide par price)
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| Price: | Par
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| Yield: | 12%
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| Spread: | 860 basis points over 6% Treasury due Aug. 2009
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| Call features: | Callable starting Sept. 27, 2006 at par plus half the "Par Value Rate" (the future coupon), then par plus 25% of the "Par Value Rate," then at par.
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| Equity claw: | From Sept. 27, 2003-2005 for 35% at par plus the "Par Value Rate"
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| Settlement date: | Sept. 27, 2002
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| Ratings: | Moody's: B2
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| Standard & Poor's: B
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| Rule 144A CUSIP: | 362384AA7
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