Lender Processing Services, Inc. Gets $1.185 Billion “Loan Mod” on its Senior Secured Credit Facility

Lender Processing Services, Inc. Completes Refinancing of its Senior Secured Credit Facility

JACKSONVILLE, Fla., Aug. 18, 2011 /PRNewswire/ — Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced that it has completed the refinancing of its existing credit facility.

The total size of the refinanced facility is $1.185 billion, which consists of a 5-year $400 million revolving credit facility, a $535 million 5-year Term Loan A and a $250 million 7-year Term Loan B. The revolving credit facility and the Term Loan A will bear interest at a floating rate subject to a leverage ratio-based pricing grid, but initially will bear interest at a rate equal to LIBOR plus 2.25%. The Term Loan B will bear interest at a rate equal to LIBOR plus 4.5% with LIBOR subject to a 1% floor.

Proceeds from the new facility will be used to refinance existing indebtedness, pay related fees and expenses and provide for other general corporate purposes. The company expects the new facility to enhance liquidity, extend maturities, and provide more flexibility under the covenants.

Now who thinks they will default? I do…



5 Responses to “Lender Processing Services, Inc. Gets $1.185 Billion “Loan Mod” on its Senior Secured Credit Facility”
  1. Nye Lavalle says:

    I think to pay all the legal fees, fines, and damages they are going to owe!

  2. Readdocs says:

    Funny that, they restructured right after B0A restructured. Plus the back door transfer of taxpayer
    dollars to clean up their latest mess, commonly known publically as TARP.
    The division of B0A continues as good and bad banks, causing Reconstruct to be sued in
    Washington state for breaking various state laws.
    I didn’t know the pressure was so high, apparently blogging too has had a great effect on them.
    May they all, the fraudulent, live in interesting times.

  3. Michael Olenick says:

    Leading to the question … why do they need so much money?! If they needed to borrow money to stay alive while the foreclosures were running through at high-volume why can’t they live within their means?

    While trying to figure out who was stupid enough to lend to them I came across this:

    I’ll summarize. On 8/13/2011 the CEO, COO, CAO, CIO, GC, and EVP of Corp. Dev. all sold shares. Shows what they think of the business when their own money is on the line: the senior managers are dumping their personal shares at rock-bottom prices.

    • leapfrog says:

      I read an interesting article on zero hedge the other day about how Brian Moynihan claims all of his “wealth” is wrapped up in Bank of America stock. If the claim is true…GOOD! Couldn’t happen to a nicer person.

      • Michael Olenick says:

        Here’s his report:

        Looks like every month he gets a new stock grant and sells the shares; flipping income out.

        He still owns 491,333 shares though. So if we go back three months (didn’t see how many shares he owned then but will guess the same) and now the stock has dropped from $11.58 to $7.01, or $4.57/share.

        So Brian has lost $2.2 million over the past three months. Of course, he still has stock valued at $3.4 million. Don’t know why he continues selling the new grants at these low prices though if he believes it’ll go up; with his $950K/yr salary you’d think he could get by on his measly $80K/month paycheck.

        Moynihan promised “hand to hand combat.” One problem w/ hand-to-hand combat: it’s entirely possible you’ll end up having the s**t kicked out of you. Wonder if he’s enjoying the fight lately?

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