Convergint discloses price talk on first-and second-lien term loans

By Sara Rosenberg

New York, March 9 – Convergint (DG Investment Intermediate Holdings 2 Inc.) released price talk on its $1.11 billion seven-year covenant-lite first-lien term loan and $305 million eight-year covenant-lite second-lien term loan with its lender call on Tuesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 375 basis points with a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Of the total first-lien term loan amount, $180 million is delayed-draw with a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

The company’s $1.565 billion of credit facilities also include a $150 million revolver.

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal.

Commitments are due at 5 p.m. ET on March 17.

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

Convergint is a Schaumberg, Ill., service-based security systems integrator.

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