Stream Global outlines credit facility structure, talk with launch

By Sara Rosenberg

New York, Oct. 23 - Stream Global Services Inc. held its bank meeting on Tuesday morning to launch a senior secured credit facility for which a size of $400 million was revealed, according to a market source.

Tranching on the deal emerged as a $65 million five-year revolver, a $290 million seven-year term loan B and a $45 million seven-year delayed-draw term loan B, the source said.

Price talk on the term loan debt is in the Libor plus 525 basis points area with a 1.25% Libor floor and an original issue discount of 99.

The delayed-draw term loan has a ticking fee of half the spread after 30 days and the full spread after 60 days, the source continued.

There is 101 soft call protection for one year on the term B tranches and amortization is 1% per annum, with the balance due at maturity.

Commitments are due on Nov. 6.

Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC and Bank of America Merrill Lynch are the bookrunners on the deal. Royal Bank of Canada is the syndication agent.

Proceeds will be used to refinance an existing credit facility and 11¼% senior secured notes due 2014 as well as for general corporate purposes.

Stream is an Eagan, Minn.-based business process outsourcing company that provides sales, customer care, technical support and complex outsourcing services.

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