CompuCom Systems Said to Increase LBO Loan to $605 Million

CompuCom Systems Inc., a provider of information-technology services, increased the size of a term loan it’s seeking to back its buyout by Thomas H. Lee Partners LP to $605 million from $580 million, according to a person with knowledge of the deal.

The company will pay interest at 3.25 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified because the transaction is private.

CompuCom had originally proposed paying 3.5 percentage points more than Libor, with a 1.25 percent floor on the lending benchmark.

The seven-year loan will now be sold to investors at a discount of 99.5 cents on the dollar, reduced from 99 cents initially offered, the person said.

The increased size of the bank debt is expected to reduce the company’s senior note offering by $25 million, according to the person.

CompuCom was planning a $250 million sale of eight-year notes to help fund its buyout by Thomas H. Lee, a person with knowledge of the matter said earlier this week, asking not to be identified because the deal if private.

Citigroup Inc., JPMorgan Chase & Co., Bank of Montreal, Jefferies Group LLC and Sumitomo Mitsui Financial Group Inc. are arranging the LBO loan for the Dallas-based company.

Investors must let the banks know by 5 p.m. today in New York whether they want to participate in the loan deal, according to the person.

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