ConvergeOne to launch $295 million credit facility on Thursday

By Sara Rosenberg

New York, May 27 - ConvergeOne Holdings Corp. is set to hold a bank meeting at 1:30 p.m. ET in New York on Thursday to launch a $295 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are the lead banks on the deal.

The facility consists of a $25 million revolver, a $190 million six-year first-lien term loan and an $80 million seven-year second-lien term loan, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The deal has a maximum total net leverage covenant.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP.

Commitments are due on June 12, the source added.

ConvergeOne is an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction solutions and managed services.

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