ScanSource, Inc. Enters into New Credit Facilities

ScanSource, Inc. has entered into a new credit agreement with PNC Bank, National Association, establishing a five-year, $400 million multicurrency senior secured revolving credit facility and a $100 million senior secured term loan facility. The company has already borrowed $100 million under the term loan facility. The agreement includes an accordion feature allowing for potential increases in borrowings up to $250 million or 150% of EBITDA, subject to lender commitments. Interest rates on dollar-denominated loans will be based on Term SOFR or daily simple SOFR, plus a margin ranging from 1.00% to 1.75%, or a base rate plus a margin from 0% to 0.75%, depending on the company's leverage ratio. Foreign currency loans will have similar margins based on applicable benchmark rates. A commitment fee on the unused portion of the revolving credit facility will range from 0.15% to 0.30%. The agreement includes customary covenants, with a financial covenant requiring the leverage ratio to be no more than 3.50 to 1.00 and an Interest Coverage Ratio of at least 3.00:1.00. The New Credit Facility is secured by substantially all of the company's and its domestic subsidiaries' assets. Concurrently, ScanSource terminated its prior credit agreement with JPMorgan Chase Bank, N.A., repaying all outstanding indebtedness and obligations under that facility.