West launches credit facility amendment to push out maturities

By Sara Rosenberg

New York, Sept. 14 - West Corp. held a lender call at 2 p.m. ET on Tuesday to launch an amendment to its senior secured credit facility that would extend maturities, according to a market source.

The amendment will be subject to the sale of at least $500 million of senior unsecured notes that will be used to repay about $500 million of the term loans due October 2013.

Specifically, the company is looking to extend the maturity of its $250 million revolver to January 2016 from October 2012 and the maturity of $500 million of its term loans to July 2016 from October 2013.

Pricing on the extended revolver will be increased by 100 basis points across the grid, the source said.

And, pricing on the extended term loan, which will be called a term loan B-5, will be Libor plus 387.5 bps - matching terms on the previously extended term loan B-4 - up from Libor plus 237.5 bps on the non-extended.

Also, the amendment would modify the step-down schedule in the current financial covenants and modify certain covenant baskets.

Lenders are being offered a 12.5 bps amendment fee.

Wells Fargo and Deutsche Bank are the lead banks on the amendment, with Wells Fargo the left lead.

West is an Omaha, Neb.-based provider of outsourced communication services.

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