West Corp. Plans $500 Million Stock Offering to Help Pay DebtsScott Moritz
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.