ConvergeOne to launch $485 million credit facility on Tuesday

By Sara Rosenberg

New York, Sept. 9 – ConvergeOne Holdings Corp. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $485 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and TD Securities (USA) LLC are the leads on the deal.

The facility consists of a $50 million revolver, a $335 million seven-year first-lien term loan and a $100 million eight-year second-lien term loan, the source said.

Price talk on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor and a discount of 98, the source continued.

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

Covenants include a maximum net total leverage ratio, and the deal will have a portable capital structure, the source added.

Proceeds will be used to refinance existing debt and fund a shareholder distribution.

Commitments are due at 5 p.m. ET on Sept. 27.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

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