BMO Harris Provides STARTEK $50MM Facility
StarTek signed a new $50 million secured revolver with BMO Harris Bank on April 29, 2015. The facility will replace the company’s $20 million secured credit line with Wells Fargo Bank, which was set to expire in February 2016.
The amount the company may borrow under the revolving credit facility is subject to a borrowing base calculation, with an accordion feature to borrow up to $70 million in the aggregate.
Under the new agreement, the interest rate on borrowings will decrease from LIBOR plus 2.50%-3.00% to LIBOR plus 1.75%-2.25%.
“We believe the new facility is an important component of our capital structure as it addresses our liquidity needs at a more favorable rate,” said Chad Carlson, president and CEO of STARTEK. “We look forward to working with the team at BMO Harris as they provide us with the flexibility to fund our growth and execute on our strategic initiatives in the years to come.”
STARTEK is a BPO service provider with comprehensive contact centers around the world.