Sykes Enterprises enters $245 million revolving facility due 2017

By Marisa Wong

Madison, Wis., May 7 - Sykes Enterprises, Inc. entered into a credit agreement on May 3 with KeyBank NA as the lead arranger, bookrunner and administrative agent, according to an 8-K filed Monday with the Securities and Exchange Commission.

The credit agreement provides for a $245 million revolving credit facility due May 2, 2017.

The $245 million facility replaces Sykes' previous $75 million senior revolving credit facility dated Feb. 2, 2010 provided by KeyBank. The prior facility was terminated upon closing of the new facility.

The new revolver includes a $183.8 million alternate-currency subfacility, a $10 million swingline subfacility and a $35 million letter-of-credit subfacility.

Interest is equal to Libor plus an applicable margin of 112.5 basis points to 150 bps, depending on Sykes' leverage ratio. There is a commitment fee of 17.5 bps to 30 bps, also based on leverage.

The facility is guaranteed by all of Sykes' existing and future direct and indirect material U.S. subsidiaries and is secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of Sykes and the guarantors.

The credit agreement requires that Sykes' leverage ratio not exceed 2.75 to 1 at any time and that the interest coverage ratio not be less than 3 to 1 at any time.

Bank of America, NA is the syndication agent for the facility, and HSBC Bank USA, NA and RBS Citizens, NA are co-documentation agents.

Sykes is a Tampa, Fla.-based provider of outsourced customer contact management services for businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.