NCO Group talks $870 million credit facility at Libor plus 625 bps

By Sara Rosenberg

New York, Nov. 30 - NCO Group Inc. launched its $870 million credit facility on Wednesday morning with price talk of Libor plus 625 basis points, according to a market source.

The facility consists of a $120 million revolver that has no Libor floor and a $750 million term loan that has a 1.25% Libor floor.

The term loan is being offered at an original issue discount of 96 to 97 and includes 101 soft call protection for one year, the source said.

Commitments are due on Dec. 13.

Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBS Securities Inc. are the lead banks on the deal.

Proceeds will be used to back the already completed roughly $470 million acquisition of APAC Customer Services Inc. by One Equity Partners and pending merger with One Equity's portfolio company, NCO Group, and to refinance existing debt at both companies.

Other funds for the transaction are coming from $300 million of bonds and $300 million of equity.

The combined company is being renamed Expert Global Solutions Inc.

NCO is a Horsham, Pa.-based provider of business process outsourcing services. APAC is a Bannockburn, Ill.-based provider of customer care services.

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