Moody's affirms ClientLogic

Moody's Investors Service said it affirmed ClientLogic Corp.'s B3 corporate family rating following the announcement of its plan to merge with Sitel Corp. and withdrew the B1 rating on ClientLogic's $122 million first-lien bank credit facility and the Caa1 rating on its $35 million second-lien bank credit facility, both of which have been refinanced.

The outlook is stable.

Under the terms of the proposed merger, a newly formed subsidiary of ClientLogic will merge with Sitel and pay $4.05 per share in cash for all of the outstanding common stock of Sitel. The transaction, which ClientLogic expects to be completed in the first quarter of 2007, is subject to customary closing conditions, including shareholder approval and regulatory clearances.

The agency said it will continue to focus on the firm's prospective capitalization, free cash flow and earnings following the merger, including the potential for expense reduction.

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