Daily News: November 15, 2013

PNC Provides Revolver, Term Loan to Pivot Technology Solutions

Pivot Technology Solutions announced that it entered into an agreement with PNC Bank for the provision of $185 million of senior secured asset- based revolving credit and term loan facilities.

The new facility, held by the company’s wholly owned U.S. holding company, ACS Acquisition Holdings, with the company’s indirectly wholly owned subsidiaries, ACS, ProSys and Sigma as co-borrowers, replaces the separate facilities held by ACS, ProSys and Sigma with PNC and Wells Fargo Bank.

The new consolidated facility consists of a $10 million term loan and a senior secured revolving credit facility that allows the company to draw down up to $175 million, the amount available based on eligible accounts receivable and inventory. PNC has agreed to underwrite the new facilities and retains the right to syndicate the new facilities to other lenders in its capacity as sole lead arranger.

Kerri Brass, CFO of Pivot, stated, “The new agreement has several benefits for Pivot. Firstly, it will create savings on interest payments. Secondly, the facility will provide increased liquidity through the term loan and higher advance rates on certain accounts. Thirdly, the facility provides more flexibility through its consolidated nature, as well as in the use of funds drawn down. Finally, the facility has an inbuilt mechanism to scale up at our discretion.”

Warren Barnes, CEO of Pivot, stated, “This refinancing is a good example of how we are achieving synergies through integration of our operational companies. The new facility is an important step in this ongoing process, and we are pleased to continue our close partnership with PNC.”

The final maturity of the term loan will occur 45 months from the date of closing; the term loan will bear interest at a rate based on LIBOR plus the applicable margin of 10%.

The final maturity of the revolver will occur five years from the date of closing. The revolver will bear interest at a rate based on LIBOR plus the applicable margin, which will vary between 200 bps and 250 bps based on excess availability. The revolver may be increased by a maximum aggregate amount of $50 million.

Pivot delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their unique business needs.