Vertiv Announces Successful Completion of Term Loan Repricing

Rhea-AI Summary

Vertiv (NYSE: VRT) has successfully completed the repricing of its subsidiary Vertiv Group 's existing seven-year $2.1 billion Term Loan. The repricing reduces the interest rate by 25 basis points to Term SOFR + 175 basis points, which will result in annual interest savings of approximately $5 million.

Positive

• Interest rate reduction of 25 basis points on $2.1B Term Loan
• Annual interest savings of approximately $5 million

Negative

• None.

Insights

Financial Analyst

The successful repricing of Vertiv's $2.1 billion term loan marks a significant improvement in the company's debt structure. The 25 basis point reduction in interest rate to Term SOFR + 175 translates to meaningful annual savings of approximately $5 million. This refinancing demonstrates lenders' confidence in Vertiv's creditworthiness and reflects the company's strong market position in critical digital infrastructure. The interest savings will directly boost the bottom line and improve free cash flow, providing additional financial flexibility for growth initiatives or debt reduction. Given Vertiv's substantial market cap of nearly $47 billion, while the savings are modest relative to size, they represent smart financial management and commitment to optimizing capital structure.

COLUMBUS, Ohio--(BUSINESS WIRE)-- Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, today announced the completion of the repricing of Vertiv Group Corporation’s, a subsidiary of Vertiv Holdings Co, existing seven-year $2.1 billion Term Loan. The repricing reduces the interest rate on the Term Loan by 25 basis points to Term SOFR + 175 basis points, resulting in interest savings of approximately $5 million per year.

About Vertiv

Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’ vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Forward-Looking Statements

This release contains a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act regarding Vertiv’s interest expense. This statement is only a prediction. Actual events or results may differ materially from those in the forward-looking statement set forth herein. Readers are referred to Vertiv’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Category: Financial News

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212117441/en/

For investor inquiries:

Lynne Maxeiner

Vice President, Global Treasury & Investor Relations

Vertiv

T +1 614-841-6776

E: lynne.maxeiner@vertiv.com

For media inquiries:

Sara Steindorf

FleishmanHillard for Vertiv

E: sara.steindorf@fleishman.com

Source: Vertiv Holdings Co

FAQ

How much will Vertiv (VRT) save annually from the Term Loan repricing?

Vertiv will save approximately $5 million annually in interest expenses due to the Term Loan repricing.

What is the new interest rate for Vertiv's (VRT) Term Loan after repricing?

After the repricing, the new interest rate is Term SOFR + 175 basis points, reduced by 25 basis points from the previous rate.

What is the size of Vertiv's (VRT) Term Loan that was repriced?

The repriced Term Loan is $2.1 billion with a seven-year term.

How much did Vertiv (VRT) reduce its Term Loan interest rate by?

Vertiv reduced its Term Loan interest rate by 25 basis points.