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.

This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions