ING Bank and DBS Bank served as underwriters on a $185 million senior debt facility comprising a $165 million term loan and a $20 million revolving credit facility for CSP Alpha Holdings, a wholly-owned subsidiary of Startek

ING and DBS were the lead lenders of the company’s previous senior debt facility, which is now repaid in full.

Borrowings under the new senior debt will bear a tiered interest rate, which is based on the company’s consolidated net leverage ratio and is initially set at LIBOR plus 450 basis points.

The term loan will have a moratorium on principal repayment for 21 months and will amortize quarterly thereafter, beginning in November 2022. The loan is subject to certain standardized financial covenants. 

“Our new credit facility allows us to extend the maturities of our debt and provides enhanced liquidity. Most importantly, it has a moratorium on principal repayments for the first 21 months, which will provide increased flexibility for the company to manage its operations and finances. This also enables us to take advantage of growth opportunities and long-term strategic investments that can further improve the margin profile and earnings power of the organization,” Aparup Sengupta, global CEO and chairman of Startek, said.

Startek is a provider of tech-enabled business process management solutions.