TeleTech Holdings, Inc
) recently announced that it has secured a multi-currency
revolving credit facility of $700 million to increase its
liquidity. The five-year credit facility has an accordion feature
to extend the borrowing capacity to $1 billion and expires on Jun
TeleTech has procured this credit facility to fund its working
capital requirements, discretionary investments and capital
distributions. TeleTech also plans to use the funds to expand its
business through both organic as well as inorganic growth.
Additionally, the company aims to efficiently finance its
long-term growth strategies and to explore value-creating
opportunities by leveraging increased financial flexibility.
Previously in Oct 2010, TeleTech had procured a $350 million
revolving credit facility, which was subsequently raised by an
additional $150 million in Mar 2012. As of Mar 31, 2013, the
borrowing capacity of the existing revolving facility was
approximately $381.2 million. During the last reported quarter,
the company had cash and cash equivalents of $170.5 million and
generated $6.5 million from its operating activities. The
additional funds, which have more favorable terms, will
strengthen TeleTech's existing financial position.
TeleTech provides technology-enabled solution to its customers,
which helps its client companies to maximize their revenue,
transform customer experience and build an optimum business
model. The company serves more than 250 clients in sectors like
automotive, broadband, communications, financial services,
government, healthcare, logistics, media and entertainment,
TeleTech currently carries a Zacks Rank #2 (Buy). Some other
stocks within the industry include
Portfolio Recovery Associates Inc
Sykes Enterprises, Incorporated
), each carrying a Zacks Rank #2 (Buy).
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