| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Convergint Technologies > News item |
Convergint shifts funds to first-lien loan, tightens pricing
New York, Jan. 26 – Convergint Technologies (Gopher Sub Inc.) moved $45 million of funds into its new first-lien term loan from the second-lien tranche and narrowed pricing on all the term loans, according to a market source.
The seven-year first-lien term loan (B2/B) is now $620 million in size, increased from $575 million, and priced at Libor plus 300 basis points with an issue price of 99.75 and a 0.75% Libor floor.
Convergint launched the loan at Libor plus 350 bps with a 0.75% Libor floor and a price of 99.5.
Of the total loan, $60 million is delayed draw and $560 million funded, up from $40 million and $535 million, respectively, at launch.
The ticking fee on the delayed-draw loan is zero for the first 45 days, 50% of the margin for days 46 to 75 and 100% of the margin subsequently.
The second-lien loan is reduced to $186 million from $211 million (Caa2/CCC) while pricing is narrowed to Libor plus 675 bps at 99.5 with a 0.75% Libor floor from Libor plus 750 bps with a 0.75% Libor floor and OID of 99 originally.
Recommitments were due at 2 p.m. ET on Friday.
The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are the lead banks on the deal.
Convergint is also arranging a $75 million revolver.
Proceeds will be used to help fund the buyout of the company by Ares Management.
Convergint is a Schaumberg, Ill. service-based security systems integrator.
© 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.