West Corp. to launch $3.05 billion credit facilities on Tuesday

By Sara Rosenberg

New York, Sept. 18 – West Corp. (Olympus Merger Sub Inc.) will hold a bank meeting at 2 p.m. ET in New York on Tuesday to launch its $3.05 billion of senior secured credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the bookrunners on the debt.

The credit facilities consist of a $350 million revolver and a $2.7 billion seven-year covenant-light first-lien term loan.

Included in the term loan is a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due on Oct. 2.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management LLC for $23.50 per share in cash. The transaction has an enterprise value of about $5.1 billion, including net debt.

Other funds for the transaction are expected to come from $1.35 billion in senior unsecured notes and up to $1.3 billion in equity.

Closing is expected in the second half of the year, subject to receipt of regulatory approvals, West stockholder approval and other customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

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