TNS 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
June 6, 2007
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
11480 Commerce Park Drive, Suite 600, Reston, Virginia 20191-1406
(Address of principal executive offices and zip code)
(Registrants telephone number, including area code)
See Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant for a description of the amendment to the senior secured credit facility that Transaction Network Services, Inc., a wholly-owned subsidiary of Registrant, as Borrower, Registrant, as a Credit Party, and General Electric Capital Corporation, as Agent, L/C Issuer and a Lender, entered into on June 6, 2007 (the Amendment).
In March 2007, the Registrant and Transaction Network Services, Inc. (collectively referred to as the Company) entered into a senior secured credit facility, which consists of two facilities: a senior secured term loan facility in an aggregate principal amount of $225,000,000 (the Term Facility) and a senior secured revolving credit facility in an aggregate principal amount of $15,000,000 (the Revolving Facility). The Company and General Electric Capital Corporation agreed that the interest rate margins for the Term Facility would increase if the Companys corporate debt rating was lowered. In connection with the lowering of the Companys corporate debt rating by Moodys Investor Rating Service, Inc., the Company and General Electric Capital Corporation entered the Amendment which provides that the interest on the outstanding balances under the Term Facility is payable, at the Companys option, at the Base Rate plus a margin of 1.00%, or at LIBOR plus a margin of 2.00%. A copy of the Amendment is attached to this report as Exhibit 99.1.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.