Startek announces $185mn debt refinancing with term loan, revolving credit

Borrowings under new senior debt will bear tiered interest rate, based on Startek's consolidated net leverage ratio and is initially set at Libor plus 450 bps

NYSE-listed BPM firm Startek, which has centres in India, said that CSP Alpha Holdings, a wholly-owned subsidiary of the Company, has successfully completed a debt refinancing with a newly secured $185 million senior debt facility, consisting of a $165 million term loan and a $20 million revolving credit facility.

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

Aparup Sengupta, Startek’s Chairman and Global Chief Executive Officer, stated, “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.”

The loan is subject to certain standardized financial covenants. ING Bank 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.