Digi International closes $350M term loan B to finance acquisition

Digi International Inc. on Nov. 1 closed a $350 million term loan B to finance its acquisition of Ventus Holdings, according to the company. BMO Capital Markets was sole lead arranger and bookrunner on the deal, and BMO Harris Bank is administrative agent.

Pricing for the seven-year term loan is L+400, with a 0.50% Libor floor.

Proceeds from the term loan were used to finance the acquisition, to repay an existing credit facility, to pay related fees and expenses, and to provide funds for general corporate purposes.

The issuer also has a $35 million revolving credit facility, undrawn at close, with a springing first-lien leverage covenant. Pricing for the revolver is tied to leverage and is in a range of L+375-400, while commitment fees range between 37.5 basis points and 50 bps.

Nasdaq-listed Digi announced Nov. 2 that it acquired Connecticut-based Ventus for $347.4 million in cash, representing more than 8x annualized recurring revenue, according to the company.

Digi International is a global provider of internet of things connectivity products, services and solutions.