CompuCom Systems launches $635 million term loans, reveals talk

By Sara Rosenberg

New York, Sept. 19 - CompuCom Systems Inc. launched with a bank meeting on Wednesday morning $635 of covenant-light term loans and released price talk on the debt, according to market sources.

The debt consists of a $470 million six-year first-lien term loan and a $165 million seven-year second-lien term loan, sources said.

The first-lien term loan is talked at Libor plus 525 basis points with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, sources continued.

Included in the first-lien loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on Sept. 27.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

CompuCom is a Dallas-based IT outsourcing specialist.

© 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.