NCO Group obtains $200 million credit facility

By Sara Rosenberg

New York, Aug. 18 - NCO Group Inc. closed on a new $200 million credit facility due March 15, 2006 that was used to refinance existing bank debt. Citizens Bank of Pennsylvania and Wachovia Bank led the deal.

The facility consists of a $50 million revolver and a $150 million term loan. Borrowings bear interest at Libor plus 225 to 300 basis points depending on the company's consolidated funded debt to EBITDA ratio. NCO is charged a fee on the unused portion of the credit facility ranging from 37.5 to 50 basis points depending on the company's consolidated funded debt to EBITDA ratio.

Amortization requirements are quarterly repayments of $6.25 million beginning on Sept. 30, with the remaining balance due at maturity.

"We were very pleased by the overwhelming response we received from our legacy bank group as well as the newer banks. The commitments we received exceeded our expectations and showed the banking community's strong confidence in NCO as we move forward," said Steven L. Winokur, executive vice president of finance, chief financial officer and chief operating officer of Shared Services, in a news release.

NCO is a Horsham, Pa. provider of accounts receivable collection services.

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