West gains lender consent to extend maturity of credit facility

By Jennifer Chiou

New York, Sept. 24 - West Corp. announced that it obtained consent from lenders under its senior secured credit facilities to extend the maturity of a portion of its $250 million revolving credit facility to January 2016 from October 2012.

The amendments also extend the maturity of up to $500 million of its term loans to July 2016 from October 2013, with the interest rate margins of the extended portion increasing by 187.5 basis points, the company added.

The Omaha-based provider of outsourced communication services noted that the changes also increase the interest rate margins of roughly $985 million of its term loans due July 2016 by 37.5 bps to match the interest rate margins for the newly extended term loans.

West said that the loan's step-down schedule as well as some covenant baskets are also modified.

The effectiveness of the amendments is contingent on the company issuing at least $500 million of senior unsecured notes to repay a portion of its term loans.

"These changes will improve West's capital structure by extending the weighted average maturity of funded debt from 4.4 to 5.5 years and provide greater flexibility for future growth plans," chief financial officer Paul Mendlik said in a news release.

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