Boston, MA, October 1, 2009 ? Stream Global Services, Inc., (NYSE/AMEX:OOO), a premium business process outsourcing (BPO) provider specializing in customer relationship management services for the Fortune 1000, today announced the closing of its previously announced 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. 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"). The Notes were issued by the company at an initial offering price of 95.454 percent of the principal amount. We 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 availability, subject to borrowing base and other restrictions (the "Credit Facility"). 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.
Scott Murray will continue to be the Chairman and Chief Executive Officer of the combined company. Other members of the executive team will include: Robert Dechant as EVP Global Sales & Marketing; Robert Lyons as EVP Chief Technology & Information Officer; Sheila Flaherty as EVP Chief Legal Officer; Jeff Bishop as EVP Operations of Americas; Harry Jackson as EVP Operations of EMEA; Gilbert Santa Maria as SVP of Corporate Business Development; Andrew Suchoff as SVP of Global Human Resources; and Robert Aldrich as SVP of Global Finance.
"The completion of the combination of Stream and eTelecare today brings together two very strong franchises to deliver a diversified set of BPO and CRM services for our clients on a truly global basis. Stream is now one of the top service providers in the world offering customer lifecycle support services such as: sales, customer care, warranty and technical support to many of the leading companies in the world. The new capital we have raised, together with the deep support we have from our financial sponsors Ares Management LLC, Providence Equity Partners LLC and Ayala Corporation, will allow us to make long-term investments in new services and technology, as well as expand our geographic footprint into additional areas including China, South America and Japan," said CEO Scott Murray. Murray went on to say, "We have assembled one of the most experienced and proven management teams in the BPO industry, and we believe that Stream will continue to be a terrific place for young people to build and grow their careers with us over the next decade as we expand our business model to suit the needs of our clients."
Contact Information:
Sally Comollo
Director of Marketing Communications
sally.comollo@stream.com
781-304-1847
