West Corp., the operator of call centers and phone services that was taken private by Thomas H. Lee Partners LP and Quadrangle Group LLC in 2006, is planning a $500 million initial public offering to pay down its debt.
The offering, managed by Goldman Sachs Group Inc. and Morgan Stanley, will include 21.3 million shares at a price of $22 to $25 each, according to a filing today. The underwriters will have the option to purchase 3.2 million additional shares, the company said. Omaha, Nebraska-based West Corp. will use the proceeds to pay $450 million in senior notes due in 2016.
The move would mark a return to public markets for the company, which counts AT&T Inc. as its largest customer. Lee and Quadrangle, two buyout firms, led the acquisition of West for about $4 billion, including debt, almost seven years ago. Its services include telemarketing, automated customer-call routing, conference-call hosting, alerts and emergency-call services.
West Corp., founded in 1986, reported a 5.9 percent gain in revenue to $2.64 billion last year. Net income dipped 1.6 percent to $125.5 million. The company has $179.1 million in cash and about $4 billion in debt as of Dec. 31.