Moody’s might lift Sitel

Moody's Investors Service said it placed Sitel LLC's Caa1 corporate family rating and Caa1-PD probability of default rating under review for upgrade following the company's announcement of its plan to be acquired by Groupe Acticall for about $830 million.

Under the terms of the proposed transaction, a newly formed indirect subsidiary of Acticall will merge with and into Sitel, whereupon the merger sub will cease to exist, and Sitel will become the surviving company and an indirect wholly owned subsidiary of Acticall.

The transaction is expected to be completed by November. Acticall plans to repay Sitel's existing debt (roughly $775 million) at the close of transaction.

"The review for upgrade reflects Moody's expectation that Sitel will benefit from lower debt and leverage, reduced cash interest expense, and greater financial flexibility while addressing a key liquidity concern," Moody's analyst Oleg Markin said in a news release.

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