CDI enters $150 million five-year senior secured revolver via PNC

By Marisa Wong

Morgantown, W.Va., Sept. 13 – CDI Corp. entered into a credit agreement on Wednesday with PNC Bank, NA as administrative agent for a $150 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility includes a $15 million Canadian sub-facility.

Loans will bear interest at Libor plus an applicable margin of 250 basis points. The applicable margin for Canadian loans is 150 bps.

The credit agreement includes covenants requiring the company to maintain some financial ratios.

The company borrowed $100 million at closing. Proceeds will be used to fund a portion of the consideration for the merger completed on Wednesday and to refinance prior debt. Private funds managed by an affiliate of AE Industrial acquired all of the outstanding common stock of CDI.

The company may use proceeds from loans under the revolver after the closing date for working capital purposes.

CDI is a Philadelphia-based engineering and technology services company. AE Industrial is a Boca Raton, Fla.-based private equity firm specializing in control-oriented investments in aerospace, power generation and specialty industrial businesses.

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