WNS Announces Refinancing of Term Loan at Lower Rates
NEW YORK and MUMBAI —July 6 , 2010 — WNS (Holdings) Limited (NYSE: WNS), a leading
provider of global business process outsourcing (BPO) services, today announced that it will refinance its existing
term loan facility to take advantage of lower interest rates. The refinancing will entail making the third scheduled
repayment of $20 million on the existing term loan, and prepaying the remaining $115 million on the loan with
cash on hand and proceeds from a new term loan facility for $94 million that WNS has obtained vide facility
agreement dated July 2, 2010 from HSBC, Hong Kong, DBS Bank Ltd, Singapore and BNP Paribas,
Singapore. There are no penalties for the prepayment, which is expected to take place on July 12, 2010. WNS
also announced today that it has established a $30 million line of credit in the U.K., which will be drawn down
from time to time to partly fund WNS’s U.K. business.
The interest rate of the new term loan and the credit line will be approximately 100 basis points lower than the
existing facility. The payment schedule of the new $94 million term loan will mirror the payment schedule of the
existing term loan.
“The new facilities that we have put in place will have an interest rate savings of over one hundred basis points
and will make our debt more tax efficient,” said Alok Misra, WNS’s Group CFO. “In addition, due to the fact
that we have serviced the existing term loan so effectively, the covenants on the new loan are more relaxed and
give us a greater degree of operational flexibility.”
The prepayment will result in a one-time charge of approximately $5.4 million primarily on account of the
reclassification of fair value of interest rate swaps from Other Comprehensive Income in Balance Sheet to
earnings as the swaps on the existing term loan will lose hedge effectiveness and the write-off of the remaining
debt issuance costs associated with the existing term loan in 2008.
“While the prepayment of our existing