ePlus Technology gets up to $375 million credit facility

Chicago, Oct. 19 – ePlus inc. subsidiaries ePlus Technology, inc., ePlus Technology Services, inc. and Slait Consulting, LLC amended and restated the credit agreement that lists Wells Fargo Commercial Distribution Finance, LLC as administrative agent on Oct. 13 to provide for a new floorplan facility.

The new $375 million senior secured facility, with a sublimit for a $100 million revolving credit facility, has a one-year term with automatic renewal for successive one-year terms, according to an 8-K filing with the Securities and Exchange Commission.

Termination can come from either the borrowers or the administrative agent with at least a 90-day notice.

The amount available is subject to a borrowing base formulated using accounts receivable and inventory.

Interest is set at Libor plus 175 basis points with a 0% Libor floor. There are fallback provisions for the phase out of Libor.

There are no financial covenants that need to be complied with unless there is an event of default, the excess borrowing base availability is less than the greater of $17.5 million or 12.5% of the borrowing base. If any of those happen, the borrowers are required to maintain a fixed-charge coverage ratio of at least 1.1x.

Herndon, Va.-based ePlus is a technology solutions provider.

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