ICT Group tapped Bank of America over existing lead FleetBoston Financial to lead its recent $85 million facility because of B of A's reputation in the market and the pricing it pitched. "They're the number one arranger of deals of this size in the market, and they did a nice job of presenting how they'd get the deal done," David McHugh, v. p. and controller, said. B of A leads the deal on the five-member syndicate. Fleet bid for the new deal and now serves as documentation agent. "We're happy to have them remain in the deal," said McHugh.
He declined to reveal pricing, but did say it's better than what was offered on the prior deal. McHugh said he found the loan market receptive to the company's deal. "We were a little surprised at how easy it was for us to complete the deal. It made this a fairly painless process relative to what one might have expected," he said. While the company is not seeking additional financing, McHugh added, "If an existing bank wanted to share a piece with a new bank, it's possible for them to join."
The company signed the deal late last month. It replaces and increases a $45 million credit that expired on April 21. McHugh said the larger facility accommodates the company's growth. "Since we negotiated our old deal three years ago, we've more than doubled our revenue," he said, attributing the higher revenues to expansion into Canada, Europe and Australia. "It's all been organic growth and no acquisitions. We're constantly looking to expand our business, both domestically and internationally." ICT, based in Langhorne, Pa., is a global provider of integrated customer relationship management solutions.
The company was originally looking for $75-100 million, and McHugh said he's happy with the final amount. He declined to outline the covenants on the revolver.
The facility is for capital expenditures, working capital, and other corporate purposes, said McHugh. The company's EBITDA for the last fiscal year was $21.9 million, as compared to $16.6 million in 1999. The ratio of debt to EBITDA is 86. The facility is not yet rated.