NCO $139 million term B add-on flexes up to Libor plus 425 bps, 96½ OID

By Sara Rosenberg

New York, Feb. 7 - NCO Group Inc. increased pricing on its $139 million term loan B add-on (Ba3) to Libor plus 425 basis points from Libor plus 400 bps, according to a market source.

Furthermore, the original issue discount was changed to 961/2, up from 99, the source said, adding that the book has firmed at the new pricing levels.

RBS Securities is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Outsourcing Solutions Inc., a provider of business process outsourcing services, for about $325 million in cash.

Other acquisition financing will come from $210 million of PIK preferred and common equity issued to One Equity Partners, the principal shareholder of NCO, and certain co-investors.

In connection with this transaction, pricing on the company's existing $465 million term loan B will be increased from Libor plus 300 bps to match the add-on pricing.

The company's existing senior secured credit facility will also be amended to allow for the new debt and the acquisition, to appoint RBS as administrative agent and modify certain baskets.

NCO is a Horsham, Pa., provider of business process outsourcing services.

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