Tech Data gets $300 million two-year term loan at Libor plus 105 bps

By Angela McDaniels

Tacoma, Wash., Aug. 8 – Tech Data Corp. entered into a $300 million term loan due Aug. 2, 2021 on Aug. 2, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus 105 basis points.

Mizuho Bank, Ltd. is the lead arranger, bookrunner and administrative agent.

The proceeds were used to repay the company’s term loan entered into on Nov. 2, 2016. The company did not pay any early termination penalty or prepayment premium.

The new term loan has a $200 million accordion feature.

The credit agreement for the new term loan has covenants that cap the company’s total leverage ratio at 4 to 1 and require it to maintain a minimum interest coverage of 3 to 1.

The obligations of the company under the credit agreement are guaranteed by its significant domestic subsidiaries, subject to certain exceptions.

Based in Clearwater, Fla., Tech Data is a distribution company specializing in IT products and services.

© 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.