Synnex obtains $275 million revolver, $225 million term loan via BofA

By Toni Weeks

San Luis Obispo, Calif., Nov. 27 - Synnex Corp. entered into a credit agreement on Wednesday with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer that provides for up to $275 million in revolving loans and an up to $225 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, which matures Nov. 27, 2018, may be expanded by up to a total of $125 million.

Borrowings initially bear interest at Libor plus 200 basis points. The margin may range from 175 bps to 225 bps based on consolidated leverage ratio. The commitment fee, initially set at 25 bps, may range from 20 bps to 30 bps.

The agreement requires Synnex to maintain a consolidated leverage ratio of no more than 3.5 times and a consolidated fixed-charge coverage ratio of at least 1.2 times through the fiscal year ending in 2015. After that, Synnex must maintain a consolidated fixed-charge coverage ratio of at least 1.25 times.

Bank of Nova Scotia and Royal Bank of Scotland plc are co-syndication agents. HSBC Bank USA NA, Sumitomo Mitsui Banking Corp., Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Corporate Bank, Ltd. and BMO Harris Bank, NA are co-documentation agents.

The company also announced it repaid in full and terminated its existing fourth amended and restated credit agreement dated Nov. 12, 2010 with Bank of America, NA.

Synnex is a Fremont, Calif.-based business process services company.

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