Boston, MA 06/18/2014 (wallstreetpr) – Today, West Corporation (NASDAQ: WSTC) announced that it will commence a cash tender offer to buy all of its outstanding 8.625% Senior Notes which worth $500 million of principal amount. They are due in 2018. Similarly, West Corp will start a tender offer to buy 7.875% Senior Notes worth of $200 million principal amount and due in 2019.
With reference to 2018 notes, the company will also ask for the consent of the holders of 2018 notes to go for proposed amendments. This can be termed as “Consent Solicitation”. The basic purpose for this amendment & Consent Solicitation is to eliminate all restrictive clauses and certain fallouts which will happen by default. The expiry date of these Tender Offers is 15th July 2014 at midnight of Eastern Time.
2018 Notes Holders who participate in a tender but do not withdraw their senior notes by 30th June, 2014 will get total of $1063.09 per $1000 of principal amount on 2018 Notes. Unpaid and Accrued interest will also be paid on the 2018 Notes. 2019 Notes Holders who participate in tender but do not withdraw their senior notes before Early Tender date will get total of $1066.29 per $1000 of principal amount on 2019 Notes. Unpaid and Accrued interest will also be paid on the 2018 Notes as per fixed terms and conditions.
The net proceeds from these notes will be used in paying the outstanding term loan. Wells Fargo Securities, Deutsche Bank Securities Inc and LLC will be Dealer Managers for these Tender Offers.
West Corp Gets Rating
Meanwhile, West Corporation has received a Ba3 rating on its credit facilities from Moody’s Investors Service. These credit facilities consist of $300 million revolving and $350 million delayed Term loan facilities respectively. B3 rating has been given to senior unsecured notes of the West Corp. worth $1 billn as proposed by the company. Moody also degraded West Corporation (NASDAQ: WSTC) ‘s Liquidity Grade from SGL-1 to SGL-2, on speculative basis. The general outlook on ratings looks stable.
