Premiere Global Services, Inc.

About

Premiere Global Services, Inc. provides collaboration software and services in North America, Europe, and the Asia Pacific. Its collaboration platform enables business users and teams to connect and share ideas and manage projects with everywhere-access of the cloud technologies. The company’s solutions include iMeet, a Web, video, and audio conferencing solution that allow people to connect and collaborate online from computer, tablet, or smartphone; iMeetLive, a Webcasting and event streaming platform, which offers Webcasts for up to 10,000 attendees; iMeet Projects, a team workspace and project management platform for businesses to connect people and information in the cloud, enable teams to collaborate around files, combine knowledge, inspire ideas, and manage projects; and iMeet Agenday, a smart calendar application for workers to manage their day. It also provides GlobalMeet, a Web and audio conferencing solution; GlobalMeet Audio, an audio conferencing solution; and GlobalMeet Audio On-net, an on-network and Internet protocol -based audio conferencing solution. In addition, the company offers Unified Communications Services and Software to plan, design, implement, and support unified communications deployments and ensure end-user adoption; PGi Event Services, which enable customers to manage investor relations calls, Webinars, human resources announcements, town halls, and other virtual meetings; and Video Managed Services that provide full lifecycle management services for customer video infrastructure, endpoints, and applications. The company markets its solutions through direct sales, channel resellers, and strategic technology partners, as well as online through pgi.com. Its customers include software and technology companies, commercial and investment banks, retailers, travel and hospitality firms, healthcare companies, and others. Premiere Global Services, Inc. was formerly known as Ptek Holdings, Inc. and changed its name to Premiere Global Services, Inc. in January, 2005. The company was founded in 1991 and is headquartered in Atlanta, Georgia. As of December 8, 2015, Premiere Global Services, Inc. was taken private.-Bloomberg 

Wikipedia entry.

Corporate Highlights

October 2018 : PGi appoints Don Joos as Chief Executive Officer.

January 2017 :PGi enters into agreement to acquire cloud communications provider ReadyTalk

2015: PGi announced that it would be acquired by private equity firm Siris Capital Group, LLC in a transaction valued at approximately $1 billion.-Wikipedia

BDC Credit Reporter View

4/10/2019: From what we’ve read from S&P and Moody’s – but not from the BDC lenders who’ve been tight lipped – the Company is on a knife’s edge as far as viability as a going concern. Admittedly the reports we read are a few months old, and the sponsor appears to have supported the business. Furthermore, asset sales are in the works or have occurred. That might explain why the publicly traded debt as of today trades very close – if not a little better – than the level at year end 2018. Nonetheless – as Moody’s point outs – the liquidity improvements may help in 2019 but beyond remains in question. For the 3 BDCs with $53mn of par debt, this represents a high default probability and a moderate loss prospect, especially for the $28mn in second lien debt, already written down to $22mn. The potential income loss or deferral amounts to over $5.00mn on an annualized basis. Both CMFN and OXSQ have $25mn at par first and second lien positions, with Cion with only $3mn, but in second lien. If the Company’s fortunes deteriorate further – and the odds are high – both CMFN and OXSQ could be materially impacted from an earnings standpoint by a continuing default.

Highlights

1/28/2019: Moody’s further downgrades American Teleconferencing Services/PGi:

“The downgrade of the CFR reflects Moody’s view that PGi’s EBITDA will deteriorate significantly over the next 12 months. In addition, the company’s plan to offset a precipitous decline in its legacy audio conferencing revenues through a new Unified Communications as a Service (UCaaS) offering has high execution risk. The UCaaS market is large and growing rapidly but is highly competitive with several established players that have significant resources and a long track record of successful product adoption by enterprise customers. Given PGi’s challenges, Moody’s believes that the company’s ability to meet covenants beyond 2Q 2019 is highly uncertain and the capital structure is unsustainable. The risk of default and debt impairment is high given the continuing erosion in revenues and EBITDA. The scheduled maturity of PGi’s revolving credit facility in December 2020 limits the available time to demonstrate the commercial success of new products. Since its leveraged buyout PGi has executed on significant cost reductions that have mitigated the impact of declining revenues. But sustained revenue declines in the legacy audio conferencing revenues and prior execution challenges in launching competitive new products result in high business risks”.

IVQ 2018: For first time, valuations on $51mn at cost of first lien and second lien discounted by greater than 10%. Added to Watch List.

December 28, 2018: S&P downgraded the Company:

  • “U.S.-based global audio conferencing service provider Premiere Global Services Inc.’s (PGi) operating and financial performance continue to deteriorate, increasing the likelihood that the company will default or undertake a distressed exchange in the coming months absent unanticipated significantly favorable changes in its circumstances.
  • At the same time, we are lowering our issue-level rating on PGi’s first-lien debt to ‘CCC-‘ from ‘B-‘ and revising our recovery rating on the debt to ‘3’ from ‘2’ based on our expectation for more claims outstanding at default.
  • The negative outlook reflects the potential that we could lower our rating on PGi to ‘CC’ upon its announcement of a default or distressed exchange”.

October 08, 2018 :  Moody’s downgraded American Teleconferencing Services, Ltd.’s Corporate Family Rating to Caa1, from B3, its Probability of Default Rating to Caa1-PD, from B3-PD, and the rating for its first lien credit facilities to B3, from B2. The ratings outlook is negative. ATS is a wholly-owned subsidiary of Premiere Global Services, Inc.

IVQ 2016: Second lien term loan added, due in 2022. CMFN , OXSQ and Cion Investment are involved. Total exposure increases to $39mn and $65mn following quarter.

IIQ 2016: $20mn BDC exposure initiated with senior secured term loan, due 2021. Lenders include CMFN and OXSQ.