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Simpson Thacher recently represented JPMorgan, Bear Stearns and Lehman Brothers in connection with the financing of the acquisition of Telcordia Technologies, Inc. by Warburg Pincus and Providence Equity for a total purchase price of approximately $1.35 billion in cash. The financing included a $570 million senior credit facility and an offering of $300 million of 10% senior subordinated notes due 2013.

The bond financing originally priced on February 25 but after a review of the company's first quarter projected results revealed revenue would be lower than market expectations all trades were unwound and the deal was re-marketed, an extremely rare event. The bank and bond transactions eventually repriced on March 11, which proved difficult among weaker high-yield conditions. The issuance of high-yield notes and the senior credit facility closed on March 15, 2005, and the proceeds from the financings were used to partially pay the purchase price to the seller.

Telcordia is a leading provider of core software and services that major communications service providers rely on to design, operate and support their networks, and deliver and administer their services.

The Simpson Thacher team included Art Robinson, Dan Kamensky and Grenfel Calheiros (Capital Markets); JT Knight, Colette Pollitt and Kelly Norton (Credit); Philippine Dodd and Mark Solomon (Intellectual Propoerty); Adeeb Fadil and Noreen Lavan (Environmental); Frances Adkins (ERISA); Mark Lab (blue sky); Fagie Hartman and Rebecca Clar (labor); Sonita Bennitt (tax); and Simon Burce (paralegal).