TNS Inc. said Wednesday it plans to change terms of a loan in order to be able to buy back up to $50 million in stock and complete an acquisition.
TNS, which sells payment data services to retailers, banks and other companies, said its senior secured credit facility would currently let it buy back only up to $10 million in stock.
TNS said changing the credit facility would let it buy up to $50 million in stock over 18 months, and it will exercise a feature in the loan to raise another $50 million to complete the $112.5 million acquisition of caller-ID company Cequint Inc. That deal also was announced Wednesday.
The company also is seeking an additional $25 million in borrowing capacity under its revolving credit facility that could be used to buy shares. Stock buybacks boost per-share earnings and expand the percentage size of shareholders' stakes.
TNS shares gained 21 cents to close at $15.75.
