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Comsys gets commitment for $183 million credit facility via Merrill Lynch Capital
By Sara Rosenberg
New York, July 20 - Comsys Holding Inc. has received a fully underwritten commitment for a $183 million credit facility consisting of a revolving credit facility with about $45 to $50 million of availability at closing, a senior term loan and a senior second-lien term loan, company officials said during a conference call Tuesday.
Merrill Lynch Capital is the lead bank on the deal.
It is estimated that annual interest expense on the credit facility will be somewhere around $9 to $10 million, officials added in the call.
Comsys will get the credit facility in connection with its merger with Venturi Partners Inc. in a stock-for-stock exchange.
Proceeds from the credit facility, combined with the net cash proceeds from the sale of Venturi's commercial staffing business (which is a condition of the merger) and the issuance of about $38 million in new preferred stock to existing creditors of Comsys and Venturi, will be used to pay off about $175 million of funded debt.
The consummation of the merger, a refinancing of the combined business and the sale of Venturi's commercial staffing business are all expected to occur before Oct. 31, a company news release said.
Comsys is a Houston IT staffing and services company.
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