BofA Agents Facility for SYNNEX to fund IBM Division Acquisition
SYNNEX announced completion of a new financing arrangement to fund the acquisition of IBM’s customer relationship management business, as well as SYNNEX’ general working capital requirements. In connection with the new credit agreement, Bank of America is acting as administrative agent, and the Bank of Nova Scotia and the Royal Bank of Scotland acted are acting as co-syndication agents.
SYNNEX has entered into a credit agreement with a group of commercial banks that provides for the extension of a revolving credit facility of $275 million and a term loan of $225 million.
Under the credit agreement, SYNNEX has the ability to request an increase in the amount of the revolving facility and/or term loan by an aggregate maximum principal amount of up to $125 million. The credit agreement replaces SYNNEX’ prior $100 million revolving credit agreement dated November 12, 2010. Both the revolving credit facility and term loan extended under the new credit agreement will mature in November 2018.
SYNNEX anticipates the initial closing of the acquisition to occur in Q1/ 14. Approximately 90 percent of the incoming employees from IBM will be included in this initial closing.
SYNNEX, a Fortune 500 corporation, is a business process services company, servicing resellers, retailers and original equipment manufacturers in multiple regions around the world.