Virtusa seeks consents to amend $300 million 7 1/8% notes due 2028

By Wendy Van Sickle

Columbus, Ohio, Jan. 31 – Virtusa Corp. is soliciting consents to amend the indentures governing the $300 million of 7 1/8% senior notes due Dec. 15, 2028 issued by Virtusa and Austin HoldCo Inc., according to a Monday news release.

The purpose of the proposed amendment is to permit the issuers additional restricted payment capacity of $50 million in order to facilitate Virtusa making a distribution to its shareholders in an amount up to $748 million. Virtusa said it expects to consummate new debt financings in order to finance this special distribution and pay related fees and expenses.

The company is offering a consent payment of $10 per $1,000 principal amount to holders who deliver their consents by the deadline, 5 p.m. ET on Feb. 8.

The consent payment will be paid only if the requisite consents are received from holders of a majority of the principal amount of the notes. The payment is also subject to some other conditions, including the issuers consummating the planned debt financings.

The record date is Jan. 28.

BofA Securities (980 388-3646 or debt_advisory@bofa.com) is the solicitation agent. D.F. King & Co, Inc. (212 269-5550, 800 431-9646 or virtusa@dfking.com) is the information and tabulation agent.

The information technology services company is based in Southborough, Mass.

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