West Corp. flexes $2.7 billion term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 2 – West Corp. (Olympus Merger Sub Inc.) increased pricing on its $2.7 billion seven-year covenant-light first-lien term loan to Libor plus 400 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

Also, the Libor floor on the term loan was changed to 1% from 0%, the original issue discount widened to 99 from 99.5 and the 101 soft call protection was extended to one year from six months, the source said.

The company’s $3.05 billion of senior secured credit facilities (Ba3/B/BB+) also include a $350 million revolver.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the bookrunners on the debt.

Commitments are due at noon ET on Tuesday, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management LLC for $23.50 per share in cash. The transaction has an enterprise value of about $5.1 billion, including net debt.

Other funds for the transaction are expected to come from $1.35 billion in senior unsecured notes and up to $1.3 billion in equity.

Closing is expected in the second half of the year, subject to receipt of regulatory approvals, West stockholder approval and other customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

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