Bank of Montreal acted as administrative and collateral agent on a credit agreement – consisting of a $40 million five-year revolving credit facility and a $190 million five-year term loan – with Extreme Networks. Extreme also borrowed $200 million under its senior secured credit facilities.
According to a related 8-K filing, BMO Harris Bank acted as an issuing lender and swingline lender on the new agreement.
Borrowings under the senior secured credit facilities will bear interest, at the company’s election, at a rate per annum equal to LIBOR + 1.50% to 2.75%, or the adjusted base rate plus 0.50% to 1.75%, based on the company’s consolidated leverage ratio. Extreme Networks is also required to pay a commitment fee of between 0.25% and 0.40% quarterly (currently 0.35%) on the unused portion of the revolver, also based on the consolidated leverage ratio. Principal installments are payable on the term loan quarterly starting June 30, 2018. The senior secured facilities are secured by substantially all of the company’s assets.
Concurrently with the new facilities, Extreme Networks terminated its October 28, 2016 agreement with administrative agent Silicon Valley Bank.
Founded in 1996 and headquartered in San Jose, CA, Extreme Networks provides software-driven solutions to 30,000 customers in a wide range of industries, including hospitality, retail, transportation and logistics, education, government, healthcare and manufacturing.