Converge Increases Global Revolving Credit Facility by $100 Million to $600 Million Under Existing Accordion Feature

Rhea-AI Summary

On February 9, 2023, Converge Technology Solutions Corp. announced an increase in its Global Credit Facility from $500 million to $600 million. The expansion allows the company to borrow under its multi-currency facility to support ongoing global expansion.

The credit facility features loans based on the SOFR rate, with a margin of 1.25% to 2.25%. The Group CEO, Shaun Maine, stated this improvement enhances liquidity and supports the company’s disciplined acquisition strategy in North America and Europe.

Positive

• Increased Global Credit Facility from $500 million to $600 million enhances liquidity.
• The facility supports ongoing global expansion and disciplined acquisition strategy.
• Attractive credit terms with SOFR-based interest rates between 1.25% and 2.25%.

Negative

• None.

TORONTO and GATINEAU, QC, Feb. 9, 2023 /PRNewswire/ - Converge Technology Solutions Corp. ("Converge" or "the Company") (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) a services-led, software-enabled IT & Cloud Solutions provider, is pleased to announce it has increased its $500 million global revolving credit facility (the "Global Credit Facility") to $600 million under its accordion feature on its existing credit terms. J.P. Morgan and Canadian Imperial Bank of Commerce are joint lead arrangers, with the Bank of Nova Scotia, the Toronto-Dominion Bank, and the Bank of Montreal participating in the lender group.

This increase will provide additional capacity to allow the Company to borrow under its multi-currency facility to fund Converge's ongoing expansion globally. Generally, for U.S. dollar borrowings under the credit facility, the applicable interest rate will be based on SOFR rate plus applicable margin of 1.25% to 2.25%.

"We are pleased to have the support of our banks, which strengthens our liquidity position on attractive terms and supports our disciplined acquisition strategy in North America and Europe," stated Shaun Maine, Group CEO of Converge. "We are well positioned to continue creating value for our shareholders through organic and inorganic growth and strategic capital deployment."

About Converge

Converge Technology Solutions Corp. is a services-led, software-enabled IT & Cloud Solutions provider focused on delivering industry-leading solutions and services. Converge's global solution approach delivers advanced analytics, application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. The Company supports these solutions with advisory, implementation, and managed services expertise across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.

Forward-Looking Information

Certain information contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to the Company's NCIB, the timing and amount of potential purchases and the cancellation of Common Shares under the NCIB, the entering into of the Agreement, the Company's belief that repurchasing shares is an appropriate use of available funds and other statements that are not historical facts. Forward-looking statements are necessarily based upon various assumptions that, while the Company considers reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Except as required by law, Converge assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. The reader is cautioned not to place undue reliance on forward-looking statements.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's filings available on SEDAR under the Company's profile at www.sedar.com including its most recent Annual Information Form, its Management Discussion and Analysis and its Annual and Quarterly Financial Statements.

The TSX has not reviewed the information provided under this press release and does not accept responsibility for the adequacy or accuracy of this release.

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SOURCE Converge Technology Solutions Corp.

FAQ

What is the latest news about Converge Technology Solutions Corp. (CTSDF)?

Converge Technology Solutions Corp. announced an increase in its Global Credit Facility from $500 million to $600 million on February 9, 2023.

How will the increased credit facility impact CTSDF?

The increase in the credit facility provides additional liquidity to support Converge’s ongoing global expansion and acquisition strategy.

What are the terms of the new credit facility for CTSDF?

The new credit facility offers loans based on the SOFR rate, with a margin of 1.25% to 2.25% for U.S. dollar borrowings.

Who are the banks involved in the CTSDF credit facility increase?

J.P. Morgan and Canadian Imperial Bank of Commerce are joint lead arrangers, with participation from the Bank of Nova Scotia, Toronto-Dominion Bank, and Bank of Montreal.