Synnex receives debt commitment for Tech Data merger

Chicago, March 22 – Synnex Corp. received a debt commitment for its announced merger with Tech Data, a transaction agreement valued at $7.2 billion, including net debt, according to a press release.

Tech Data is wholly owned by funds managed by affiliates of Apollo Global Management, Inc. and their co-investors.

Upon closing, Synnex shareholders will own around 55% of the combined entity and Apollo Funds will own approximately 45%.

In connection with the merger, Synnex received a debt commitment from Citigroup Global Markets Inc. Citi has committed to provide a $4 billion 364-day senior term bridge facility and a $3.5 billion 364-day senior revolver.

The bridge facility, if drawn, will bear interest at Libor plus a range between 112.5 basis points and 175 bps, depending on Synnex’ debt rating. The margin will step up 25 bps every 90 days after the closing of the facility.

Commitment fees on the undrawn amount range from 12.5 bps to 30 bps, also based on debt rating.

The combined company will have pro forma adjusted EBITDA of $1.5 billion and expected combined debt of around $4 billion at close. Debt-to-adjusted EBITDA is expected to be around 2.7x at close and to decline to approximately 2x within 12 months.

Closing is expected in the second half of 2021.

Synnex is a Fremont, Calif.-based business process services company. Tech Data is a Clearwater, Fla.-based technology distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.