CompuCom launches $580 million term loan B at Libor plus 350 bps

By Sara Rosenberg

New York, April 24 - CompuCom Systems Inc. launched a $580 million seven-year senior secured term loan B on Wednesday that is talked at Libor plus 350 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

Amortization is 1% per annum with the remainder due at maturity.

Mandatory prepayments are 100% of asset sales, 100% of non-permitted debt incurrence proceeds and 50% of excess cash floor with senior secured leverage-based step-downs to 25% at 3.25 times and 0% at 2.25 times, the source continued.

The loan has a $150 million accordion feature plus an amount such that pro forma senior secured leverage is 4 times or less, subject to 50 bps MFN with an 18-month sunset provision.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets, Jefferies Finance LLC and Sumitomo Mitsui Banking Corp. are the arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners LP from Court Square Capital Partners.

Commitments are due on May 3, the source added.

Closing is expected the week of May 6.

CompuCom is a Dallas-based IT services and solutions specialist.

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