Pricing on the $2.35 million credit for West Corp. flexed up last Monday, a day before syndication closed, a banker said. Led by Lehman Brothers, Deutsche Bank, Bank of America and Wachovia Securities, pricing was originally set at LIBOR plus 2 1/2%, but was flexed up 25 basis points to LIBOR plus 2 3/4%. West Corp. is expected to break sometime this week.
One investor said the leverage on West Corp. was hard to swallow. Leverage is roughly 6.25 times total and 4 times on the bank debt (CIN, 9/29).
West's credit consists of a six-year, $250 million revolver and a seven-year, $2.1 billion term loan. It launched Oct. 3 and will be used by the newly formed Omaha Acquisition Corp., owned by private equity firms Thomas H. Lee Partners and Quadrangle Group, to acquire West for approximately $4.1 billion (9/29).