UGS Corp. $550 million issue talked 9½% area on dollar tranche, 25 bps behind on euro

By Paul A. Harris

St. Louis, May 17 - Price talk in the area of 9½% emerged Monday on UGS Corp./UGS PLM Solutions' dollar tranche included in the company's $550 million equivalent offering of eight-year senior subordinated notes (B3/B-), a syndicate source said. The offering also includes a euro tranche.

The euro tranche is being talked at 25 basis points behind the dollar tranche.

Tranche sizes remain to be determined.

Citigroup, JP Morgan and Morgan Stanley are joint bookrunners for the Rule 144A/Regulation S offering.

The notes will come with four years of call protection.

Proceeds will be used to finance the acquisition of UGS PLM by BSW Holdings Inc. from Electronic Data Systems Corp. for $2.05 billion in cash.

The issuer is a Plano, Texas-based provider of product lifecycle management software and related services.

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