ScanSource ups credit agreement to $500 million, extends term

By Wendy Van Sickle

Columbus, Ohio, Sept. 29 – ScanSource, Inc. amended and restated its senior secured credit agreement with JPMorgan Chase Bank, NA as administrative agent on Wednesday to provide for a $350 million five-year multicurrency revolver and a $150 million five-year term loan, according to an 8-K filing with the Securities and Exchange Commission.

An accordion feature provides for the company to increase its borrowings by up to an additional $250 million.

The company’s previous $350 million multicurrency revolver and term loan, which had a $131.25 million outstanding balance, were due to expire on April 30, 2024.

Borrowings in U.S. dollars will bear interest at adjusted term SOFR plus a margin ranging from 100 basis points to 175 bps, depending on leverage ratio.

JPMorgan, TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners and lead arrangers. TD Bank, NA and Wells Fargo Bank, NA are the co-syndication agents.

PNC Bank, NA is the documentation agent.

The financial covenants include a maximum leverage ratio of 3.5x and a minimum interest coverage ratio of 3x.

Borrowings may be used for general corporate purposes.

ScanSource is a Greenville, S.C.-based distributor of specialty technology products.

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