CompuCom plans tender offer for 12% senior notes, senior floating-rate toggle notes

By Devika Patel

Knoxville, Tenn., July 9 - CompuCom Systems, Inc. announced it intends to make a tender offer to purchase for cash any and all of its outstanding 12% senior notes due 2014, and CHR Intermediate Holding Corp., another subsidiary of CompuCom's parent company, CHR Holding Corp., intends to make a tender offer to purchase for cash any and all of its outstanding senior floating-rate toggle notes due 2013.

CompuCom also announced that CHR Holding Corp. has entered into an agreement in which IIM Acquisition Corp., an affiliate of Court Square Capital Partners, would acquire CompuCom.

The transaction is valued at approximately $628 million and is expected to close in the second half of 2007. The agreement already has been approved by a majority of CHR Holding Corp.'s shareholders.

The transaction will be financed through a combination of equity contributed by investment funds managed by Court Square and certain members of management, and debt financing provided by Bear, Stearns & Co. Inc.

CompuCom is a Dallas-based provider of outsourced information technology services, including providing software, networking, communications and systems integration. It also distributes hardware such as desktop, mobile, and wireless computers, networking equipment and peripherals.

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