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KORE Wireless obtained a $210 million credit facility that will refinance a syndicated loan and unveiled a preferred equity transaction.
Whitehorse Capital Management is the administrative agent and collateral agent, and UBS Securities is the lead arranger and bookrunner, according to a Nov. 9 SEC filing.
The five-year facility consists of a $185 million term loan and a $25 million revolver from Whitehorse Capital. The loans are priced at S+650 with a 1% floor, subject to a reduction to S+625 if KORE maintains a first-lien net leverage ratio below 2.25x, or S+600 if it maintains a ratio below 1.75x.
The revolving credit facility carries a 0.5% unused line fee. As of Nov. 9, KORE Wireless had received the full term loan but had not drawn from the revolver.
The term loan repaid an existing term loan and revolver of approximately $300 million placed in December 2018 via UBS. The refinancing transaction will reduce KORE Wireless’ first-lien leverage to 3.2x its trailing twelve-month adjusted EBITDA, from 5.2x.
Concurrent with the credit arrangement, KORE Wireless agreed to sell $150 million in 13% PIK preferred shares to an affiliate of Searchlight Capital Partners, with a warrant to purchase up to 11.8 million shares of common stock. The equity transaction is expected to close on or before Dec. 1.
The investment will cut total leverage to 5.3x, from 7.3x.
In 2018, KORE Wireless Group placed a $280 million first-lien term loan due December 2024 (L+550, 0% Libor floor) via lead arranger UBS. Proceeds funded an acquisition and refinanced debt. In 2021, The company merged with a SPAC affiliated with Cerberus Capital Management. Abry rolled its stake into the combined company.
The Atlanta-based technology company specializes in advising organizations on, and deploying, internet-of-things (IoT) devices and software.
This article originally appeared on PitchBook News