West Corp. LBO to involve up to $3.3 billion of new debt, including some high-yield bonds

By Paul A. Harris

St. Louis, May 31 - West Corp. will issue about $3.2 billion to $3.3 billion of new debt including high-yield bonds to fund the buyout of the company, according to informed sources.

Deutsche Bank Securities and Lehman Brothers will be leading the bond offering, the size of which remains to be determined.

The financing will also include a new credit facility.

On Wednesday Omaha, Neb.-based West announced that it has agreed to recapitalize the company in a transaction sponsored by an investor group led by Thomas H. Lee Partners and Quadrangle Group LLC, which values the company at about $4.1 billion.

Under the agreement, all stockholders except Gary and Mary West, the founders of the company and chairman and vice chairman of the board, respectively, will receive $48.75 per share in cash.

Gary and Mary West, who own about 56% of the outstanding shares of the company's common stock, will convert about 85% of their current ownership into $42.83 per share in cash, and about 15% into shares of the corporation surviving the merger.

The merger transaction is expected to close in the fourth quarter of 2006.

West is a provider of outsourced communication solutions.

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