Moody's rates West loans Ba3, notes B3

Moody's Investors Service said it concluded the review of West Corp.'s ratings and confirmed its B1 corporate family rating and the ratings on its existing debts.

The agency also said it assigned a B1 corporate family rating to Olympus Merger Sub, Inc., along with Ba3 rating on its proposed senior secured credit facilities and B3 rating on its senior unsecured notes.

The ratings were assigned in connection with the acquisition of West by funds affiliated with Apollo Global Management, LLC, for about $5.1 billion.

The outlook is stable.

Upon the close of the acquisition, Olympus Merger Sub will merge into West Corp. and the ratings will be assumed by West, Moody's said.

Olympus Merger Sub has initiated a tender offer for the existing West senior notes due 2022 and West initiated a change of control offer for the senior notes due 2022 and senior secured notes due 2021, the agency explained.

Pro forma for the acquisition, West's total debt-to-EBITDA will increase by 1.3x to slightly more than 6x, Moody's said.

The ratings also reflect West's high initial leverage and execution risk over the next 12 to 24 months as the company implements significant cost reductions, the agency said.

West operates in highly competitive markets and its audio conferencing business faces risk of substitution from internet-based technologies, Moody's said.

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