NCO Group cancels tender offers for 11 7/8% notes, floating-rate notes

By Angela McDaniels

Tacoma, Wash., Dec. 14 - NCO Group, Inc. terminated the tender offers and consent solicitations for its $200 million of 11 7/8% senior subordinated notes due 2014 and $165 million of floating-rate senior notes due 2013, according to a company news release.

All notes tendered in the offers will be returned promptly.

The offers began Nov. 30 and were conditioned on the company entering into a new senior secured credit facility and issuing at least $300 million of new senior notes.

On Wednesday, the company announced that it will not move ahead with the note offering due to the rates currently available in the market.

NCO Group's majority owner, One Equity Partners, agreed in July to acquire APAC Customer Services, Inc. and plans to combine APAC with NCO Group. NCO said the companies are continuing to look at alternatives that will allow the combination to be completed.

The tender offers were scheduled to end at 12:01 a.m. ET on Dec. 29.

For each $1,000 principal amount of notes, NCO Group was offering $1,035.94 for the 11 7/8% notes and $1,002.50 for the floaters. Both amounts included a consent payment of $10.00 for each note tendered with consents by 5 p.m. ET on Dec. 13, the consent deadline.

Holders would have also received accrued interest up to but excluding the payment date.

The solicitations were seeking approval to amend the note indentures to eliminate substantially all of the restrictive covenants and some events of default and related provisions. Consents were needed from holders of a majority of the notes in order to make the amendments.

When the offers began, NCO said it planned to redeem any notes that remained outstanding after the offers were completed.

Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922) and Barclays Capital Inc. (212 528-7581 or 800 438-3242) were the dealer managers and solicitation agents for the tender offers. The information agent and tender agent was D.F. King & Co., Inc. (800 859-8508).

NCO provides business process outsourcing services and is based in Horsham, Pa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.