Startek’s subsidiary refinances $185 million debt

Our Bureau Mumbai | Updated on February 25, 2021

CSP Alpha Holdings Pte Ltd, a wholly-owned subsidiary of Startek, has completed refinancing of a newly-secured $185 million debt facility, comprising 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 the company’s consolidated net leverage ratio and is initially set at LIBOR plus 450 basis points, the company said in a statement.

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“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, Startek’s Chairman and Global Chief Executive Officer, said.

The term-loan will have a moratorium on principal repayment for 21 months and will amortise quarterly thereafter, beginning November 2022. The loan is subject to certain standardised financial covenants.

ING Bank N.V. and DBS Bank Ltd were the underwriters for the new senior debt facility, and also the lead lenders of a previous senior debt facility, which was now repaid in full.

NYSE-listed Startek had merged its businesses with Indian BPO firm Aegis in 2018.

Published on February 25, 2021

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