Information Tech

Startek announces $185 million debt refinancing


Startek said CSP Alpha Holdings Pte. Ltd., a wholly-owned subsidiary of the company, has completed a debt refinancing with a newly secured $185 million senior debt facility – $165 million term loan and a $20 million revolving credit.

The business process management (BPM) firm said new debt with a longer moratorium would help in strategic investments.

Borrowings under the new senior debt will bear a tiered interest rate, which is based on the company’s consolidated net leverage ratio and is initially set at LIBOR (London InterBank Offered Rate) plus 450 basis points.

The business process management (BPM) firm said the term loan would have a moratorium on principal repayment for 21 months and will amortize quarterly thereafter, beginning November 2022.

N.V. and DBS Bank Ltd. served as underwriters for the new senior debt facility and were the lead lenders of the previous senior debt facility, which is now repaid in full.

“Our new credit facility allows us to extend the maturities of our debt and provides enhanced liquidity. Most importantly, it has a moratorium on principal repayments for the first 21 months, which will provide increased flexibility for the Company to manage its operations and finances. This also enables us to take advantage of growth opportunities and long-term strategic investments that can further improve the margin profile and earnings power of the organization,” Aparup Sengupta, chairman and global chief executive officer, was quoted saying.





Source link

ASu
I am tech enthusiast and a keen learner, Currently pursuing Bachelors in Computer Science from University of Delhi
https://technewz.org

Leave a Reply

Your email address will not be published. Required fields are marked *