Omaha communications outsourcing firm West Corp. said Wednesday that its recent public stock offering has closed and the firm has received $401 million in proceeds.
West priced the offering of 21,275,000 shares at $20 each to investment banks that served as underwriters on the offering; after underwriting discounts and commissions, West is left with $18.85 per share.
The underwriters have an option to buy an additional 3.2 million shares. The company said that a portion of that option has been exercised and that the option expires 30 days from March 22. West will use the proceeds plus cash on hand to pay off all the $450 million principal on debt taken on in 2006, plus accrued and unpaid interest. The senior subordinated notes were due in 2016 and will be redeemed at a 3.6 percent premium for early payoff.
A West spokesman said paying off the debt will save the company $49.5 million a year in interest.
The stock closed Wednesday at $19.