TNS completes dividend recapitalization
On February 25, 2014, Transaction Network Services Inc. (“TNS”) completed a leveraged recapitalization through the amendment of the existing First and Second Lien credit facilities to support a $215 million dividend to investors. The dividend represents approximately 80% of the initial equity investment in the acquisition of TNS by a Siris Capital (“Siris”) led consortium.
The incremental debt placement was oversubscribed and the recapitalization was made possible by TNS’ strong financial performance since Siris’ acquisition 12 months earlier.
Siris led a consortium of investors to acquire TNS in a take-private transaction that closed on February 15, 2013. Since closing the acquisition, Siris has worked closely with the TNS management team on refocusing its business strategy and supporting growth.
TNS is a leading provider of data communications and interoperability solutions. TNS offers a broad range of networks and innovative value-added services which enable transactions and the exchange of information in diverse industries such as retail, banking, payment processing, telecommunications and the financial markets.
Founded in 1990 in the United States, TNS has grown steadily and now provides services in over 60 countries across the Americas, Europe and the Asia Pacific region. TNS has designed and implemented multiple data networks which support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods.
Siris is a leading private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies in North America. Siris, coupled with its active limited partner co-investment program, targets complex, special situations from $250 million to $1 billion. Integral to Siris’ investment approach is its partnership with exceptional senior operating executives, or Executive Partners, who work exclusively with Siris to identify, validate and operate investment opportunities. Their significant involvement allows Siris to focus on complex, special situations; typically businesses caught in the midst of a technology transition, which creates operational, strategic, and financial challenges.