Narrative
Full Description
Project narrative
On December 1, 2021, financial close was reached on a deal in which a syndicate of 30 banks — including ICBC and China Construction Bank — entered into a $1.507 billion USD revolving credit agreement with CDW LLC and CDW Finance Holdings Limited. CDW LLC is an Illinois-based technology solutions provider specializing in hardware, software, and IT services, while CDW Finance Holdings Limited is a UK-based entity supporting global financing operations. The loan's maturity is five years, and the interest rate is LIBOR plus an applicable margin. CDW Corporation, CDW Direct LLC, CDW Government LLC, CDW Logistics LLC, CDW Technologies LLC, and Amplified IT LLC guaranteed the loan. The proceeds were used by the borrowers for general corporate purposes, which may include refinancing existing debt and facilitating the company's operational requirements and growth initiatives. While ICBC and China Construction Bank contributed undisclosed amounts to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A.; Bank of America N.A.; Morgan Stanley Bank, N.A.; Wells Fargo Bank, N.A.; Wells Fargo Commercial Distribution Finance, LLC; Capital One, National Association; Mizuho Bank, Ltd.; MUFG Bank, Ltd.; Goldman Sachs Bank USA; The Bank of Nova Scotia; U.S. Bank National Association; BNP Paribas; Citizens Bank, N.A.; PNC Bank, National Association; Regions Bank; Sumitomo Mitsui Banking Corporation; The Huntington National Bank; The Toronto-Dominion Bank; BMO Harris Bank N.A.; The Northern Trust Company; Comerica Bank; Hua Nan Commercial Bank Ltd.; Bank of Taiwan; Chang Hwa Commercial Bank, Ltd.; First Commercial Bank, Ltd.; Mega International Commercial Bank Co., Ltd.; Taiwan Business Bank; Taiwan Cooperative Bank; and Trustmark National Bank. On June 7, 2023, the lenders and the borrower entered into an amendment in which they replaced LIBOR with SOFR where there will be an adjustment in addition to the margin for the interest.
Staff comments
1. CDW LLC is a leading provider of technology products and services for business, government, education, and healthcare. Headquartered in Lincolnshire, Illinois, the company offers a broad portfolio of hardware and software products as well as services like IT consulting and managed solutions. 2. AidData estimates the interest rate by adding the 6-month average LIBOR rate in December 2021 (0.1697%) and an applicable margin based on credit ratings. The total interest for the loan is LIBOR + applicable margin (1.25% or BBB-) equal to 1.4197%. 3. The individual contributions of the 30 lenders to this $1.507 billion USD syndicated loan are unknown. AidData has estimated the contributions of ICBC and China Construction Bank using the equal contribution doctrine, dividing the total loan amount equally among all lenders, resulting in approximately $50,333,333.33 USD per lender. 4. The loan agreement can be accessed at https://www.dropbox.com/scl/fi/h9mljup5txyylyrb1z59n/EX-10.6.pdf?rlkey=owsq7c36yfec49kzw2aazgsef&st=21oa1n2q&dl=0