Pomeroy Group launches $240 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, June 9 – Pomeroy Group launched on Thursday its $240 million 5.5-year first-lien term loan with price talk of Libor plus 550 basis points with a 1% Libor floor and an original issue discount of 97 to 98, according to a market source.

The term loan has 101 soft call protection for six months, and total leverage and fixed-charge coverage covenants, the source said.

Also, there is a 75% excess cash flow sweep, and no freebie incremental basket, otherwise incrementals up to closing leverage.

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

Commitments are due on June 22, 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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