Stream Global completes merger with eTelecare parent

MANILA, Philippines - Stream Global Services, Inc., a premium business process outsourcing (BPO) provider specializing in customer relationship management services for the Fortune 1000, has completed its stock-for-stock exchange with EGS Corp., the parent company of eTelecare Global Solutions Inc.

The combined company, which will retain the Stream Global Services name, will have approximately 30,000 employees located throughout 50 service centers in North America, Europe, the Philippines, Latin America, India and Africa.

The combination creates a global BPO company with a diversified Fortune 1000 customer base, an experienced executive team, a comprehensive BPO services portfolio, and complementary businesses with technical and product leadership across a wide range of industries, including the technology, retail, entertainment, media telecommunications and financial service sectors.

Officials added that the combined company will draw upon the broad range of service strengths of each business’s integrated service offerings, ranging from sales and revenue generation to customer care and technical support, as well as warranty services.

It is estimated that the combined enterprise will have annualized revenues approaching $1 billion in 2010.

Stream has completed a previously announced private placement of $200 million aggregate principal amount of 11.25 percent senior secured notes due 2014. The notes were issued by the company at an initial offering price of 95.454 percent of the principal amount.

Company officials revealed that they intend to use the net proceeds of the notes offering to refinance existing indebtedness of Stream and eTelecare. The notes offering was led by Goldman Sachs & Co., and joint book runners were Wells Fargo Securities, Morgan Stanley and RBC Capital Markets.

Stream also completed a revolving credit facility secured by certain assets of the company and certain of its foreign subsidiaries totaling $100 million, subject to borrowing base and other restrictions. The credit facility was led by Wells Fargo Foothill, LLC; as the agent and a lender, and the other lenders include Goldman Sachs Lending Partners LLC, Morgan Stanley Senior Funding Inc., and Royal Bank of Canada.

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