Sykes Enterprises gets $150 million credit facility led by KeyBank

By Sara Rosenberg

New York, Feb. 2 - Sykes Enterprises Inc. closed on a new $150 million credit facility due Feb. 1, 2013 on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

KeyBank acted as the lead arranger, bookrunner and administrative agent on the deal.

The facility consists of a $75 million term loan and a $75 million revolver, with both tranches initially priced at Libor plus 350 basis points.

Pricing on the facility can range from Libor plus 300 bps to 400 bps based on leverage.

The revolver has a 75 bps commitment fee, which can drop to 50 bps when leverage is less than 1.00 to 1.00

Amortization on the term loan is $2.5 million per quarter in 2010, starting on June 30, $3.75 million per quarter in 2011, $5 million per quarter in 2012, with a final payment due at maturity.

Financial covenants include a leverage ratio of 2.25 to 1.00 and an interest coverage ratio of 3.00 to 1.00.

Proceeds were used to fund the acquisition of ICT Group Inc. and refinance existing bank debt.

Sykes is a Tampa, Fla.-based provider of outsourced customer contact management services in the business process outsourcing arena.

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