Narrative
Full Description
Project narrative
On August 9, 2018, financial close was reached on a deal in which a syndicate of 16 banks—including Bank of China—entered into a $1.8 billion USD syndicated loan agreement with TD SYNNEX, a Delaware-based business process services company specializing in IT distribution and customer engagement services. The maturity of the loan is five years, and the interest rate was LIBOR plus an applicable margin. The proceeds were used by the borrower to finance the acquisition of Convergys Corporation, an Ohio-based customer experience outsourcing company. While Bank of China contributed $15 million USD to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A. ($375 million USD), Bank of America, N.A. ($200 million USD), MUFG Bank, Ltd. ($200 million USD), The Bank of Nova Scotia ($200 million USD), TD Bank, N.A. ($155 million USD), Sumitomo Mitsui Banking Corporation ($150 million USD), BMO Harris Bank, N.A. ($130 million USD), Citibank, N.A. ($90 million USD), Royal Bank of Canada ($90 million USD), Wells Fargo Bank, National Association ($75 million USD), BNP Paribas ($50 million USD), Branch Banking and Trust Company ($30 million USD), HSBC Bank USA, National Association ($15 million USD), KeyBank National Association ($15 million USD), and U.S. Bank National Association ($10 million USD). On October 5, 2018, TD Synnex announced that the acquisition was complete.
Staff comments
1. SYNNEX Corporation is an American multinational business process services company headquartered in Fremont, California. It provides IT distribution, supply chain services, and outsourced customer engagement solutions. The company acquired Convergys Corporation in 2018 to expand its global customer engagement business. 2. Convergys Corporation was a company that provided business process outsourcing services, including customer management and information management products. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate for August 2018 and an applicable margin based on the consolidated net leverage ratio (1.75%).