US$330m debt refinancing

8 May 2006 07:02

Billing Services Group Limited08 May 2006 For Immediate Release 08 May 06 Billing Services Group Limited ("BSG", the "Group" or the "Company") US$330 million debt refinancing Billing Services Group Limited, one of the world's leading providers ofclearing, settlement, payment and financial risk management solutions to thetelecommunications industry, has completed its previously announced debtrefinancing with a new $330 million multi-currency credit facility. The creditfacility was increased in size due to substantial oversubscription byinstitutional investors. Deutsche Bank acted as sole lead arranger, sole bookrunner and administrative agent. Patrick J. Haynes III, Chairman, said, "The refinancing accomplishes somepivotal objectives. It enhances the Group's capital; it lowers interest costs;and it gives the Group greater flexibility in managing its worldwide business.It is a testament to our strong market proposition that we have been able tocomplete the refinancing quickly and with such robust market demand." In connection with the refinancing, BSG obtained a new credit rating for itsdebt. Moody's Investors Service raised the Company's corporate family rating toB1 from B2, and assigned a B1/B3 rating to the Company's first-lien andsecond-lien facilities, respectively. Both new assigned ratings were raised byMoody's from the Company's previous ratings of B2/Caa1 covering the Group'sprevious first-lien and second-lien borrowings, respectively. Standard & Poor'sassigned a B+ corporate credit rating to the Group. Simultaneously, S&P assigneda B+/B- rating to the Company's first-lien and second-lien facilities,respectively, reaffirming its prior rating of the Company's facilities.According to Haynes, "The debt ratings reflect a thorough review of our businessmodel, customer base and geographic diversity." He added that improved creditratings on the debt coupled with significant oversubscriptions will result insubstantial interest expense reductions. The new credit facility consists of $215 million of first-lien senior termloans, $40 million of second-lien term loans, a $15 million revolving creditfacility and a $60 million term loan facility reserved for future acquisitions(this facility was uncommitted at closing). Loans are denominated in both U.S.Dollars and Euros. The Group borrowed $255 million at closing to repay allexisting debt, to pay fees and expenses associated with the refinancing and tosupplement working capital. Inquiries Trudie ParsonsBlanc & Otus Public Relations - UK trade media relations+44 (0) 207 413 3229tparsons@blancandotus.co.uk Erin BrennanBlanc & Otus Public Relations - US media relations+1 512 372 6653ebrennan@blancandotus.com Bobby MorseBuchanan Communications - UK financial media and investor relations+44 (0) 20 7466 5000bobbym@buchanan.uk.com Notes to editors About Billing Services Group Limited (www.bsgclearing.com) is a leading globalprovider of clearing, settlement, payment and financial risk managementsolutions for communications service providers. Listed on the London StockExchange (AIM:BILL), the company has to date made two acquisitions - EDSInteroperator Services GmbH (August 2005) and United Clearing Plc (March 2006). Through its operating business units, the Group processes over 20 billiontransactions annually for 630 of the world's largest communications companiesthroughout North America, Europe and Asia. Recent developments include: * renewal of agreement with Cincinnati Bell for GSM internationalroaming financial clearing and settlement services; * the availability of BSG's Roaming Information Service in Europe andAsia; and * the joint marketing and distribution with BT of its Onepay(TM) servicesin the United Kingdom. With a ubiquitous, scalable platform and an extensive portfolio of clearinghouseservices for wireless, fixed-line, WLAN, content and next-generation networks,BSG monetizes network transactions by facilitating financial settlements.Positioned at the center of network commerce, BSG has the ability to processaccurately and manage billions of financial transactions with the higheststandards of security, reliability and trust, all in real time. This information is provided by RNS The company news service from the London Stock Exchange