WNS Announces Refinancing of Term Loan at Lower Rates
July 06 2010 - 8:00AM
Marketwired
WNS (Holdings) Limited (NYSE: WNS), a leading provider of global
business process outsourcing (BPO) services, today announced that
it will refinance its existing term loan facility to take advantage
of lower interest rates. The refinancing will entail making the
third scheduled repayment of $20 million on the existing term loan,
and prepaying the remaining $115 million on the loan with cash on
hand and proceeds from a new term loan facility for $94 million
that WNS has obtained vide facility agreement dated July 2, 2010
from HSBC, Hong Kong, DBS Bank Ltd, Singapore and BNP Paribas,
Singapore. There are no penalties for the prepayment, which is
expected to take place on July 12, 2010. WNS also announced today
that it has established a $30 million line of credit in the U.K.,
which will be drawn down from time to time to partly fund WNS's
U.K. business.
The interest rate of the new term loan and the credit line will
be approximately 100 basis points lower than the existing facility.
The payment schedule of the new $94 million term loan will mirror
the payment schedule of the existing term loan.
"The new facilities that we have put in place will have an
interest rate savings of over one hundred basis points and will
make our debt more tax efficient," said Alok Misra, WNS's Group
CFO. "In addition, due to the fact that we have serviced the
existing term loan so effectively, the covenants on the new loan
are more relaxed and give us a greater degree of operational
flexibility."
The prepayment will result in a one-time charge of approximately
$5.4 million primarily on account of the reclassification of fair
value of interest rate swaps from Other Comprehensive Income in
Balance Sheet to earnings as the swaps on the existing term loan
will lose hedge effectiveness and the write-off of the remaining
debt issuance costs associated with the existing term loan in
2008.
"While the prepayment of our existing term loan will result in a
one-time charge of approximately $5.4 million, this will have
minimal impact on our cash flow and our interest savings should
enable us to recoup most of this charge within the current fiscal
year. This has already been factored into our guidance for the
fiscal year," Misra added.
WNS intends to furnish the new term loan facility agreement to
the U.S. Securities and Exchange Commission along with its next
quarterly results report.
About WNS
WNS (Holdings) Limited (NYSE: WNS) is a leading global business
process outsourcing company. Deep industry and business process
knowledge, a partnership approach, comprehensive service offering
and a proven track record enables WNS to deliver business value to
some of the leading companies in the world. WNS is passionate about
building a market-leading company valued by our clients, employees,
business partners, investors and communities. For more information,
visit www.wns.com.
Safe Harbor Statement under the provisions of the United States
Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements, as defined in
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on our current expectations, assumptions, estimates and
projections about our Company and our industry. The forward-looking
statements are subject to various risks and uncertainties.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "anticipate,"
"believe," "estimate," "expect," "intend," "will," "project,"
"seek," "should" and similar expressions. These statements include,
among other things, the discussions of our expectations concerning
our future results and interest rate savings. We caution you that
reliance on any forward-looking statement involves risks and
uncertainties, and that although we believe that the assumptions on
which our forward-looking statements are based are reasonable, any
of those assumptions could prove to be inaccurate, and, as a
result, the forward-looking statements based on those assumptions
could be materially incorrect. These factors include but are not
limited to worldwide economic and business conditions; political or
economic instability in the jurisdictions where we have operations;
regulatory, legislative and judicial developments; our ability to
attract and retain clients; technological innovation;
telecommunications or technology disruptions; future regulatory
actions and conditions in our operating areas; our dependence on a
limited number of clients in a limited number of industries; the
implications of our recently announced accounting changes and
restatement of our financial statements and any adverse
developments in existing legal proceedings or initiation of new
legal proceedings; our ability to expand our business or
effectively manage growth; our ability to hire and retain enough
sufficiently trained employees to support our operations; negative
public reaction in the US or the UK to offshore outsourcing;
increasing competition in the BPO industry; our ability to
successfully grow our revenue, expand our service offerings and
market share and achieve accretive benefits from our acquisition of
Aviva Global Services Singapore Pte. Ltd. (which we have renamed as
WNS Customer Solutions (Singapore) Private Limited following our
acquisition) and our master services agreement with Aviva Global
Services (Management Services) Private Limited; our ability to
successfully consummate strategic acquisitions; and volatility of
our ADS price. These and other factors are more fully discussed in
our annual report on Form 20-F for the fiscal year ended March 31,
2010 filed with the U.S. Securities and Exchange Commission which
is available at www.sec.gov. In light of these and other
uncertainties, you should not conclude that we will necessarily
achieve any plans, objectives or projected financial results
referred to in any of the forward-looking statements. Except as
required by law, we do not undertake to release revisions of any of
these forward-looking statements to reflect future events or
circumstances.
CONTACT: Investors & Media: Alan Katz SVP -- Investor
Relations WNS (Holdings) Limited +1 212 599-6960 ext. 241 Email
Contact
WNS (NYSE:WNS)
Historical Stock Chart
From Apr 2024 to May 2024
WNS (NYSE:WNS)
Historical Stock Chart
From May 2023 to May 2024