West Corp. plans $3.05 billion loans, $1.35 billion notes for buyout

By Sara Rosenberg

New York, June 15 – West Corp. has received a commitment for up to $3.05 billion of senior secured credit facilities and plans to issue up to $1.35 billion in senior unsecured notes to help fund its acquisition by Apollo Global Management LLC, according to a PREM14A filed with the Securities and Exchange Commission on Thursday.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the arrangers on the debt.

The credit facilities consist of a $350 million revolver and an up to $2.7 billion term loan.

The term loan will be reduced by the amount of any of West’s outstanding senior secured notes that remain outstanding on the closing date after giving effect to the consummation of the transactions.

Backing the senior unsecured notes is a commitment for an up to $1.35 billion senior unsecured bridge loan.

Under the agreement, Apollo is buying the company for $23.50 per share in cash. The transaction has an enterprise value of about $5.1 billion, including net debt.

Other funds for the transaction will come from up to $1.3 billion in equity.

Closing is expected in the second half of the year, subject to receipt of regulatory approvals, West stockholder approval and other customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

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