Convergint revises first- and second-lien term loan sizes

By Sara Rosenberg

New York, March 18 – Convergint (DG Investment Intermediate Holdings 2 Inc.) upsized its seven-year covenant-lite first-lien term loan to $1.155 billion from $1.11 billion and downsized its eight-year covenant-lite second-lien term loan to $280 million from $305 million, according to a market source.

Of the total first-lien term loan amount, $200 million is delayed-draw, increased from $180 million, with a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Pricing on the first-lien term loan remained at Libor plus 375 basis points, but a 25 bps step-down was added after 0.5x of first-lien net leverage deleveraging, the source said.

The first-lien term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The second-lien term loan is still priced at Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5, and has call protection of 102 in year one and 101 in year two.

The company’s now $1.585 billion of credit facilities, up from $1.565 billion, also include a $150 million revolver.

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

Commitments were scheduled to be due at noon ET on Thursday, the source added.

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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