By Paul A. Harris
St. Louis, March 14 - Global eXchange Services, Inc. downsized to $105 million from $175 million its offering of senior secured floating-rate notes due 2008 (B) and priced them at 95.0, according to a market source.
The notes came with an interest rate of three-month Libor plus 900 basis points, the source stated. There is a Libor floor of 3%.
The $70 million reduction in the notes was shifted to a new term loan.
Standard & Poor's, which had assigned the previously announced $175 million of five-year floating-rate notes a B+ rating, assigned a B rating to the new structure.
Price talk, initially heard as three-month Libor plus 750 basis points, had widened to three-month Libor plus 900 basis points, according to market sources.
Credit Suisse First Boston was the underwriter on the notes.
The Gaithersburg, Md. automation services and software provider will use proceeds to refinance bank debt.
| Issuer: | Global Exchange Services, Inc.
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| Security description: | Senior secured floating-rate notes
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| Bookrunner: | Credit Suisse First Boston
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| Amount: | $105 million (decreased from $175 million)
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| Proceeds: | $99.75 million
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| Maturity: | July 15, 2008
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| Interest rate: | Three-month Libor plus 900 basis points, with a 3% Libor floor
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| Price: | 95
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| Call features: | Callable on Oct. 1, 2004 at 103, then 101.5, declining to par on Oct. 1, 2006
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| Ratings: | Standard & Poor's: B
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| Price talk: | Libor plus 900 basis points (increased from Libor plus 750 basis points)
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| Cusip: | 362384AD1
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| Settlement: | March 21 (T+5)
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