Webhelp, a global leader in business process outsourcing (BPO), has announced the closing of a €75m add-on and a re-pricing of its existing €560m First Lien Term Loan Facilities. Pro forma for the new raise, the total First Lien Term Facilities are €635m.
The transaction optimises Webhelp’s financing structure by decreasing annual interest expense as well as providing strong liquidity for its next phase of growth and expansion.
Pricing of the existing €560m First Lien Term Loan Facility was reduced from a margin of 550bps to 425bps at Par from initial guidance of 450-475bps coupled with a lender fee of 0.25%.
Given the strong investor support, the size of the add-on was increased from €50m to €75m. Proceeds of the add-on repay the company’s RCF borrowings and free up dry-powder for future acquisitions.
In addition, to better match its underlying cash flows, Webhelp was able to introduce a new £75m tranche.
The offering was very well received, achieving unanimous consent from the existing lenders and a very strong orderbook for the new money.
The debt facilities were originally syndicated in early 2016 when KKR became a new investor and financial partner to Webhelp. The terms of the refinancing demonstrate the soundness of the industry fundamentals, the relevance of Webhelp’s business model and the quality of its management team.
The transaction was arranged by KKR Capital Markets and Nomura.