Compucom Systems Inc., a provider of information technology services, cut the rate on a $580 million term loan it’s seeking to back its buyout by Thomas H. Lee Partners LP, according to a person with knowledge of the deal.
The company will pay interest at 3.25 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified because the transaction is private.
Compucom had originally proposed paying 3.5 percentage points more than Libor, with a 1.25 percent floor on the lending benchmark.
The seven-year loan will now be sold to investors at a discount of 99.5 cents on the dollar, a discount reduced from 99 cents initially offered, the person said.
The company may increase the size of the debt by as much as $25 million while reducing a senior note offering by the same amount, said the person.
CompuCom was planning a $250 million sale of eight-year notes to help fund its buyout by Thomas H. Lee, a person with knowledge of the matter said earlier this week, asking not to be identified because the deal if private.
Citigroup Inc., JPMorgan Chase & Co., Bank of Montreal, Jefferies Group LLC and Sumitomo Mitsui Financial Group Inc. are arranging the LBO loan for the Dallas-based company.
Investors must let the banks know by 5 p.m. today in New York if they want to participate in the loan deal, according to the person.
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