KLDiscovery enters $390 million three-tranche credit agreement

By Wendy Van Sickle

Columbus, Ohio, Feb. 8 – KLDiscovery Inc. entered into a credit agreement on Monday with LD Lower Holdings, Inc. as borrower and Wilmington Trust, NA as administrative agent that provides for up to $390 million over three tranches, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the credit agreement provides for $300 million of initial term loans; $50 million of delayed-draw term loans; and a $40 million revolver with a $10 million sublimit for letters of credit.

The initial and delayed-draw term loans bear interest at Libor plus 650 basis points and amortize at a rate of 1% of the loans outstanding, payable quarterly.

The revolver bears interest at Libor plus 400 bps.

Each tranche is set to mature on the earlier of five years after closing or six months prior to the maturity of the company’s 8% convertible debentures due 2024.

The credit agreement contains a financial maintenance covenant that requires the company to maintain a first-lien net leverage ratio of less than or equal to 7x.

The McLean, Va.-based company provides technology-enabled services and software to help law firms, corporations, government agencies and consumers solve complex data challenges.

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