Pomeroy Group flexes $240 million term loan to Libor plus 600 bps

By Sara Rosenberg

New York, July 8 – Pomeroy Group increased pricing on its $240 million 5.5-year first-lien term loan to Libor plus 600 basis points from Libor plus 550 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 97, the wide end of the 97 to 98 talk, the source said.

The term loan still has a 1% Libor floor, 101 soft call protection for six months, and total leverage and fixed-charge coverage covenants.

The company’s $280 million credit facility (B2/B) provides for a $40 million revolver as well.

Allocations are targeted to go out in the Tuesday/Wednesday timeframe, the source added.

Natixis is the lead on the deal.

Proceeds will be used to help fund the merger of Pomeroy and Tolt Solutions.

Other funds for the transaction will come from a $75 million second-lien term loan that was privately placed.

As part of the transaction, Clearlake Capital Group LP entered into a definitive agreement to acquire Pomeroy and simultaneously back the combination of Pomeroy with Tolt Solutions.

First-lien leverage is 3.7 times and total leverage is 4.8 times.

Pomeroy Group is a provider of IT infrastructure solutions and managed services.

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