TeleTech Completes Debt Reduction
TeleTech Holdings has completed a debt reduction plan, paying off $75 million in senior notes and reducing annual interest expenses by $5 million, the company said.TeleTech, Denver, will take an $8 million charge in the second quarter from the completion of the debt reduction, of which $6 million will be related to a cash "make-whole" payment on the senior notes and the rest to writing off debt insurance costs. TeleTech originally estimated it would take a $9 million charge. The charge was lower because of recent increases in long-term treasury rates, and TeleTech expects to recoup the entire amount through future interest savings.
The company also structured a new $100 million revolving credit facility in May and drew $65 million from it as part of its debt reduction plan. TeleTech said its total long-term debt decreased $50 million as a result of the plan.
