S&P rates Sitel, loans BB-

S&P said it gave Sitel Group SA and its planned senior secured loans BB- ratings. The recovery ratings for the company’s planned $250 million multicurrency revolving credit facility, $1.4 billion senior secured term loan and €1 billion senior secured term loan is 3.

“The BB- rating reflects Sitel's relatively large scale, global footprint, and diverse service end markets; leading customer experience digital transformation capabilities and technology platform; and solid growth prospects, profit margins, and cash flow generation. It also reflects the company's participation in the fragmented and price competitive customer engagement business process outsourcing (BPO) industry with low barriers to entry, moderate acquisition integration risks and relatively high pro forma adjusted leverage, which we expect will be in the mid- to high-4x range at the end of 2021,” S&P said in a press release.

Sitel will use the loan proceeds to help fund its $2.2 billion acquisition of Sykes Enterprises Inc. and refinance its capital structure.

The outlook is stable.

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