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…