NEW YORK, Dec. 11, 2017 (GLOBE NEWSWIRE) -- Presidio, Inc. (NASDAQ:PSDO) (together with its subsidiaries, “Presidio” or the “Company”), a leading North American IT solutions provider delivering Digital Infrastructure, Cloud and Security solutions to middle-market customers, announced today that on December 8, 2017 it priced a proposed $741.6 million term loan B facility (the “Term Loan B Facility”), which refinances Presidio’s existing $601.6 million term loan facility and provides $140.0 million of additional term loans which will be used to redeem Presidio Holdings Inc.’s existing 10.25% senior notes due 2023 (the “Senior Notes”).
The Term Loan B Facility is expected to be issued at a price equal to 99.75% of its face value, with an interest rate of LIBOR plus 2.75% or alternate base rate plus 1.75%, 0.50% lower than Presidio’s existing term loan facility, and a 1.00% LIBOR floor. The maturity date of the Term Loan B Facility is expected to be February 2, 2024, a two year extension to the maturity of Presidio’s existing term loan facility. The closing of the proposed Term Loan B Facility is expected to occur by January 5, 2018 and is subject to customary closing conditions.
Presidio intends to use the proceeds from the Term Loan B Facility, in addition to cash on-hand, to repay all $601.6 million outstanding under its existing term loan facility, redeem all $125.0 million of Presidio Holdings Inc.’s outstanding Senior Notes, and pay fees, expenses, premiums and interest relating thereto.
In connection with the Term Loan B Facility, on December 5, 2017, the Company issued a notice of redemption to holders of the Senior Notes, which notice is conditional on the closing of the Term Loan B Facility. As a result of the redemption of the Senior Notes and the refinancing of Presidio’s existing term loans with the Term Loan B Facility, the Company expects to realize annualized interest expense savings of approximately $10.5 million.
Presidio is a leading North American IT solutions provider focused on Digital Infrastructure, Cloud and Security solutions. We deliver this technology expertise through a full life cycle model of professional, managed, and support services including strategy, consulting, implementation and design. By taking the time to deeply understand how our clients define success, we help them harness technology advances, simplify IT complexity and optimize their environments today while enabling future applications, user experiences, and revenue models. We serve approximately 7,000 middle-market, large, and government organizations across a diverse range of industries. More than 2,700 Presidio professionals, including more than 1,500 technical engineers, are based in 60+ offices across the United States in a unique, local delivery model combined with the national scale of a $2.8 billion dollar industry leader. We are passionate about driving results for our clients and delivering the highest quality of service in the industry. Presidio is controlled by funds affiliated with Apollo Global Management, LLC (NYSE:APO).
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “expects,” “in-tends,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements include statements relating to: the completion and timing of the transactions, future financial performance, business prospects and strategy, anticipated trends, prospects in the industries in which our businesses operate and other similar matters. These forward looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward looking statements for a variety of reasons, including, among others: risks and uncertainties related to the capital markets, changes in senior management at Presidio, changes in our relationship with our vendor partners, adverse changes in economic conditions, risks resulting from a decreased demand for Presidio’s information technology solutions, risks relating to rapid techno-logical change in Presidio’s industry and risks relating to acquisitions or regulatory changes. Certain of these and other risks and uncertainties are discussed in Presidio’s filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect our business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward looking statements, which only reflect the views of our management as of the date of this press release. We do not undertake to update these forward-looking statements.
Source: Presidio, Inc.
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