CDW amends, lifts revolver to $1.25 billion, extends maturity to 2019

By Tali Rackner

Norfolk, Va., June 9 – CDW LLC amended, extended and increased the size of its senior secured asset-based revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new agreement increases the overall revolving credit facility to $1.25 billion from $900 million, increases the maximum aggregate amount of incremental increases that may be made to the revolving credit facility to $300 million from $200 million and extends the maturity date to June 6, 2019 from June 24, 2016.

It also removes the limit on the floorplan subfacility, reduces the fee on the unused portion of the revolving credit facility to 25 basis points from either 37.5 bps or 50 bps and reduces the pricing grid by 50 bps (with an additional reduction of 25 bps if, and for as long as, CDW’s corporate credit rating is BB or better and its corporate family rating is Ba3 or better, in each case with stable or better outlook).

Borrowings will continue to bear interest at Libor plus an applicable margin based upon average daily excess cash availability. That margin now ranges from 150 bps to 200 bps.

CDW’s ability to borrow under the revolver remains limited by a minimum liquidity condition, which was amended to provide that, if excess cash availability is less than the lesser of (a) $125 million (up from $90 million in the original revolving loan agreement) and (b) the greater of (i) 10% of the borrowing base and (ii) $100 million (up from $60 million), the lenders are not required to lend any additional amounts under the revolver unless the consolidated fixed-charge coverage ratio is at least 1 to 1.

JPMorgan Chase Bank NA is the administrative agent.

CDW is a Vernon Hills, Ill.-based provider of integrated information technology solutions.

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