Wells Fargo Agents West Corporation Amendment
West Corporation (WSTC) announced it has received lender consent to amend the credit agreement governing its senior secured credit facilities.
According to an 8-K filing dated January 13, 2014, Wells Fargo was said to be the administrative agent for the lender group. WSTC said the company had not yet executed any definitive documentation relating to the amendment. According to the filing, WSTC last amended its senior secured credit facilities on October 5, 2010.
This new amendment is expected to reduce the applicable margins of all term loans by 25 basis points and lower the LIBOR and base rate floors of all term loans by 25 basis points.
Upon closing, the company expects to have outstanding the following term loan tranches:
rate + 1.50% with a 1.75% base rate floor)
2.00% with a 0.75% LIBOR floor (base rate loans to be at a rate of base
rate + 1.00% with a 1.75% base rate floor)
“This amendment is an important step in our strategy to improve our net income and cash flow by reducing our interest expense though a combination of rate and debt reduction,” said Paul Mendlik, West Corporation CFO. “We expect these changes to reduce our annual cash interest expense by approximately $12 million.”
Omaha, NE-based West Corporation is a provider of technology-driven communication services.