Fitch rates West loan reopening BB+/RR1

Fitch Ratings said it affirmed West Corp.’s B+ long-term issuer default rating with a stable outlook.

The agency also affirmed the senior secured debt rating at BB+/RR1 on West's proposed upsizing of first-lien term loans by $700 million.

The ratings for the unsecured notes were affirmed at B-/RR6.

Roughly half of the term loan proceeds ($350 million) will be used to finance the previously announced acquisition of Nasdaq's Public Relations Solutions and Digital Media businesses and pay related fees and expenses. The other $350 million will be used to repay $343 million of senior secured notes due in 2021.

“The refinancing helps push out the maturity wall since the final maturity on term loans is in 2024,” the agency said in a news release.

“However, there is no further room under Fitch's current recovery assumptions for additional senior secured debt in the existing capital structure within the current issue rating and recovery rating at the secured debt level. Fitch's recovery analysis indicates a 91% recovery for the senior secured credit facility, with a recovery rating of RR1.”

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