StarTek receivables securitisation
- Dr P Singh
- Jun 1, 2020
- 1 min read
A StarTek SPV purchases invoices off StarTek and they are sold to Regions Bank at a discount of LIBOR+1.60%. A non-usage fee of 40bp is also applicable. The securitisation is non-recourse to StarTek as long (as there are no breaches of the terms of sale) and StarTek has no rights and obligations attached to the receivables.
The 3-year transaction expires Apr 2023 and caters for a total of $35m of purchased receivables.
The transaction achieved off BS under US GAAP
Finacity will act as master servicer. The servicing fee is a min of 1% of the pool of receivables.
Debtors (invoice obligors) include Vodafone, AT&T and Aetna, but not T-mobile USA and Charter Communications. Invoices are due in upto 90 days.
Debtors may be unrated. Eligible receivables include revenue that has been recognised in the company's books but not yet invoiced to the customer. They also include obligations of customers to StarTek (or the SPV as assigneed) whether or not a service has been performed or goods sold, by StarTek.
Form 8-K SEC 17/4/2020
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