Digi International gets $200 million revolver at Libor plus 125 bps

By Taylor Fox

New York, March 19 – Digi International Inc. entered into an amended and restated credit agreement providing a $200 million senior secured revolving credit facility with an option to increase by an additional $75 million, according to a news release and an 8-K filing with the Securities and Exchange Commission.

There are $10 million sublimits for letters of credit and swingline loans.

The new facility replaced the existing credit facility that included a $48 million term A loan balance and a $100 million revolver.

Borrowings bear interest at Libor plus a margin ranging from 125 basis points to 325 bps, and the commitment fee ranges from 20 bps to 40 bps, both depending on leverage ratio. The initial margin is 125 bps and the initial commitment fee is 20 bps.

Digi may use borrowings for working capital, capital expenditures, restricted payments, acquisitions and other general corporate purposes.

BMO Harris Bank, NA is the administrative agent and collateral agent.

BMO Capital Markets Corp. is the sole bookrunner and a joint lead arranger along with Silicon Valley Bank.

Digi must comply with a minimum consolidated interest coverage ratio of 4x and a maximum consolidated leverage ratio of 2.75x.

Digi is a Hopkins, Minn.-based provider of internet of things (IoT) connectivity products, software and services. Opengear is a Piscataway, N.J.-based provider of secure IT infrastructure products and software.

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