Concentrix obtains $3.1B amended pro rata facility for acquisition, refinancing

Concentrix Corp. disclosed that on Dec. 27, it entered into an amendment to its credit facility in connection with its acquisition of PK, which has closed. The amendment effectively refinanced the company's existing term loan in full with a new $2.1 billion term loan A and increased the company's revolver to $1 billion from $600 million.

The amendment also extended the maturity of the facility to December 2026 from November 2025 and replaced the pricing benchmark to the secured overnight financing rate, from Libor. Proceeds from the new term loan were also used to finance the acquisition of PK.

Pricing is tied to a leverage-based grid, at Sofr+125-200, opening at Sofr+150.

BofA Securities, MUFG, PNC Capital Markets, Sumitomo Mitsui, The Bank of Nova Scotia, TD Bank, Truist Securities and U.S. Bank acted as joint lead arrangers and joint bookrunners. Bank of America is administrative agent.

The facility is covered by a total leverage covenant set at 3.75x and a total interest coverage ratio set at 3x.

As of Aug. 31, the company had $700 million outstanding under its previous term loan.

Concentrix provides technology-infused customer experience solutions.