CDW amends, extends, increases asset-based revolving credit facility

By Marisa Wong

Morgantown, W.Va., March 31 – CDW LLC amended, extended and increased the size of its senior secured asset-based revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The second amended and restated revolving loan agreement amends and restates CDW’s prior revolving loan credit agreement dated June 6, 2014.

The amendment, among other things, increases the overall revolver to $1.45 billion from $1.25 billion; extends the maturity date to March 31, 2022 from June 6, 2019; and eliminates the ratings-based adjustment to the pricing grid, providing for interest rate margins at the reduced interest rate margins previously applicable only if CDW satisfied the ratings-based requirement.

Borrowings under the revolver will continue to bear interest at a variable rate based upon average daily excess cash availability, the filing noted. The spread for Libor loans ranges from 125 basis points to 175 bps and is currently 150 bps.

In addition, CDW’s ability to borrow under the revolver remains limited by a minimum liquidity condition. If excess cash availability is less than the lesser of (i) $125 million and (ii) the greater of (a) 10% of the borrowing base and (b) $100 million, the lenders are not required to lend any additional amounts under the revolver unless the consolidated fixed-charge coverage ratio is at least 1.00 to 1.00.

JPMorgan Chase Bank, NA, Wells Fargo Capital Finance, LLC, Bank of America, NA, Royal Bank of Canada and Barclays Bank plc are joint lead arrangers and joint bookrunners with JPMorgan Chase Bank as administrative agent and Wells Fargo Commercial Distribution Finance, LLC as floorplan funding agent.

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and health care organizations.

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