Converge Technology Solutions Corp. Announces Increase to Credit Facility and Addition of J.P. Morgan Chase to Syndicate

Rhea-AI Summary

Converge Technology Solutions Corp. has secured approval to increase its ABL credit facility from $190 million to $300 million with a banking syndicate led by CIBC. In addition, J.P. Morgan Chase & Co. has been added to the syndicate. CEO Shaun Maine highlighted significant financial growth in 2021 and emphasized the importance of this credit increase for future investments, particularly in acquisitions. With nothing currently drawn, the additional $110 million will support Converge's growth strategy into 2022 and beyond.

Positive

• Credit facility increased from $190 million to $300 million, enhancing financial flexibility.
• Strengthening of banking relationships with addition of J.P. Morgan Chase & Co.
• CEO's statement reflects confidence in continued expansion and financial growth.

Negative

• None.

TORONTO and GATINEAU, Quebec, Dec. 08, 2021 (GLOBE NEWSWIRE) -- Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX:CTS) (FSE:0ZB) (OTCQX:CTSDF) a software-enabled IT & Cloud Solutions provider, is pleased to announce it has gained approval to increase its ABL credit facility from $190 million to $300 million in an agreement with a syndicate of banks led by CIBC. Converge will also add J.P. Morgan Chase & Co. to the Company’s syndicate of banks.

“Over the course of this year, Converge has realized significant financial growth as exemplified in our recently released earnings announcement,” stated Shaun Maine, CEO of Converge. “As we move into 2022, we remain confident in our continued expansion. With nothing currently drawn on the line, the increase of $110 million to Converge’s credit facility will allow Converge to continue building upon and investing in our strategy of growth by acquisition and other initiatives for the upcoming year and beyond.”

About Converge
Converge Technology Solutions Corp. is a software-enabled IT & Cloud Solutions provider focused on delivering industry-leading solutions and services. Converge’s regional sales and services organizations deliver advanced analytics, cloud, and cybersecurity offerings to clients across various industries. The Company supports these solutions with managed services, digital infrastructure, and talent expertise offerings 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.

For further information contact:
Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: 416-360-1495

FAQ

What is the significance of Converge's credit facility increase to $300 million on December 8, 2021?

The increase allows Converge to have enhanced financial flexibility for future growth initiatives, particularly acquisitions.

Who is leading the banking syndicate for Converge's credit facility?

The banking syndicate is led by CIBC, with J.P. Morgan Chase & Co. also included.

What will Converge use the additional $110 million from the credit facility for?

The funds will support Converge's growth strategy, including investments in acquisitions and other initiatives.

What has Converge indicated about its financial growth in 2021?

Converge has reported significant financial growth, as noted by CEO Shaun Maine in their earnings announcement.

What is the current status of Converge's credit line after the increase?

As of the announcement, Converge has not drawn any amount from the increased credit line.