Tangoe details $200 million five-year senior secured credit agreement

By Tali Rackner

Minneapolis, June 16 – Tangoe Inc. and Asentinel, LLC entered into a $200 million senior secured credit agreement on Friday in connection with a merger of the two companies, according to an 8-K filed with the Securities and Exchange Commission.

The facility is comprised of a $190 million five-year term loan facility and a $10 million five-year revolving loan facility, which includes both a letter-of-credit sub-facility and a swingline loan sub-facility.

Asentinel may request one or more incremental term loan facilities in an aggregate amount of up to the sum of (a) A $50 million; plus (b) the aggregate amount of all voluntary prepayments of the term loan facility; plus (c) an additional amount if it attains certain leverage ratios, subject to certain conditions and receipt of commitments by existing or additional lenders.

Interest is equal to Libor plus 850 basis points with a 1% Libor floor.

After Asentinel delivers financial statements for the four fiscal-quarter period ending June 30, 2019, the applicable margins may be reduced if it attains certain total net leverage ratios.

Term loans under the facilities will amortize in equal quarterly installments each equal to (a) 0.25% of the original principal amount of the term loans in years one and two; (b) 0.625% of the original principal amount of the term loans in year three; (c) 1.25% of the original principal amount of the term loans in year four; and (d) 1.875% of the original principal amount of the term loans thereafter, with the balance payable at maturity.

PNC Bank, NA is the administrative agent on the deal. Obsidian Agency Services, Inc. is the collateral agent and syndication agent, and Tennenbaum Capital Partners, LLC and TPG Specialty Lending, Inc. are joint lead arrangers.

The credit agreement is in connection with Asentinel’s acquisition of Tangoe, which was completed on Friday.

Tangoe is an Orange, Conn.-based provider of IT and Telecom Expense Management software and related services to a wide range of global enterprises and service providers. Asentinel is a provider of Telecom Expense Management software and services and a portfolio company of Marlin Equity Partners.

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