Convergint readies launch of 1st-lien, 2nd-lien term loan financing

A Credit Suisse-led arranger group has scheduled a lender call for 10 a.m. on March 9 to launch $1.11 billion of first-lien and $305 million of second-lien covenant-lite term loan financing for Convergint Technologies LLC, according to sources. Commitments will be due by 5 p.m. ET on March 17.

The first-lien term loan is comprised of a $930 million funded tranche and a $180 million delayed-draw term loan. It will have a seven-year maturity and comes with six months of 101 soft call protection.

The eight-year second-lien term loan will include hard calls at 102 and 101 in years one and two, respectively.

In addition to the term loans, the company will have a $150 million revolving credit facility. The borrower is DG Investment Intermediate Holdings 2 Inc.

Proceeds from the deal will be used to refinance existing debt and fund a dividend. Pricing is L+300 on the company's existing covenant-lite first-lien term loan due February 2025, and L+675 on its second-lien loan due February 2026, both with a 0.75% Libor floor. The loans were originally put in place in 2018 to finance the buyout of the company by Ares Management.

Convergint Technologies is a global service-based systems integrator.