S&P rates West loans BB

S&P said it affirmed its BB- corporate credit rating on West Corp.

The rating outlook is stable.

At the same time, the agency assigned a BB issue-level rating and 2 recovery rating to the company's proposed $750 million term loan A-2 due 2021 and $470 million term loan B-12 due 2023. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; upper half of the range) of principal in the event of payment default.

S&P also affirmed its BB issue-level rating on the company's term loan B-10 due 2018, term loan A-1 due 2019, term loan B-11 due 2021 and $300 million revolving credit facility (maturity extended to 2021 from 2019 as part of the proposed refinancing). The 2 recovery rating is unchanged, indicating an expectation for substantial recovery (70%-90%; upper half of the range) of principal in the event of a payment default.

Additionally, the agency affirmed its B+ issue-level rating on the company's 5 3/8% senior unsecured notes due 2022. The 5 recovery rating is unchanged, indicating an expectation for modest recovery (10%-30%; lower half of the range) of principal in the event of a payment default.

West will use the proceeds from the proposed debt to refinance a portion of its term loan B-10 due 2018 and term loan A-1 due 2019. The company plans to issue additional senior secured debt as part of its refinancing plans.

S&P will withdraw its ratings on the term loan A-1 due 2019 when the company completes the proposed refinancing transaction.

"Our corporate credit rating on West Corp. reflects our assessment of the company's business risk profile as fair and its financial risk profile as aggressive," S&P credit analyst Heidi Zhang said in a news release.

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