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Distribution Solutions amends credit facility to add $305 million incremental loan
Chicago, June 9 – Distribution Solutions Group, Inc. amended and restated its credit agreement from April 1, 2022 for the first time on June 8 to add an incremental term loan, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement now provides for the $305 million incremental term loan with a $200 million accordion, subject to the receipt of additional commitments or new lenders.
As of June 8, there were $591.3 million of term loans outstanding and no draws under the company’s revolver.
Proceeds were used to pay for the acquisition of Hisco by the borrower for an upfront payment of $269.1 million with the possibility of a $12.6 million future earn-out payment.
Interest is SOFR plus 100 basis points to 275 bps, based on the company’s total net leverage ratio.
All of the loans mature April 1, 2027.
Quarterly amortization payments of $3,812,500 start in September.
Mandatory prepayments are due if the company disposes of certain assets or takes on unpermitted debt.
JPMorgan Chase Bank, NA is the administrative agent.
JPMorgan Chase Bank, NA, BofA Securities, Inc. and CIBC Bank USA are the joint bookrunners and joint lead arrangers for the initial term loan, the revolver and the delayed-draw term loan.
For the incremental term loan, JPMorgan Chase Bank, NA, TD Bank, NA, BofA Securities, Inc., Regions Bank Capital Markets and Capital One, NA are the joint bookrunners and joint lead arrangers.
The Chicago-based company sells and distributes specialty products to the industrial, commercial, institutional and government maintenance, repair and operations market. It was previously called Lawson Products, Inc.
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