Teleperformance raises $1.5 billion in bonds for Majorel acquisition
PARIS, FRANCE — Digital business services company Teleperformance has raised €1.4 billion (US$1.5 billion) in senior unsecured Euro-denominated bonds, which the company will use in operations and refinancing following its acquisition of service company Majorel.
“This issue will refinance the acquisition of Majorel, which was finalized on November 8 and represents the last key step in the acquisition process,” Deputy CEO and Group CFO of Teleperformance Group Olivier Rigaudy said.
Earnings from the bond will be used to refinance the bridge loan related to the acquisition of Majorel. In addition, proceeds of the bond will be used to fund Teleperformance’s general business operations.
The long-term bond came in two parts: a 5-year senior bond for €700 million (US$753 million), due on November 22, 2028 with an annual fixed rated coupon of 5.25%; and an 8-year senior bond for €700 million (US$753 million), due on November 22, 2031, with an annual rated coupon of 5.75%.
The bonds have been issued under the company’s Euro Medium Term Note (EMTN) Programme. The transaction was more than 5.1-times oversubscribed.
The company announced on November 20 that it acquired 99,905,004 shares, representing approximately 99.91% of the capital carrying voting rights and voting rights in Majorel.
The partnership between the two companies is expected to solidify their position in Asia and Africa. Also, the acquisition is anticipated to boost its operations in Europe and India, as well as its Specialized Services sector.
Teleperformance and Majorel will continue to improve its performance in its diverse portfolio, particularly in social media, content moderation, financial services, and healthcare markets. Also, innovation and adaptation in the growing artificial intelligence is anticipated. Finally, the merger is expected to continue attracting the top talent across all regions.
