Digi International expands revolving credit line to $350M
What's the deal? Digi InternationalDealroom has a profile for this one. Try Dealroom → (Nasdaq: DGII), a global provider of Internet of Things (IoT) products and services, has expanded and refinanced its senior secured revolving credit facility to $350 million. The new facility replaces an existing $250 million line and matures on August 27, 2031.
The terms: An accordion feature adds borrowing capacity of the greater of $130 million or 100% of trailing twelve-month adjusted EBITDA, lifting potential capacity to $480 million. Pricing also improves, with SOFR margins ranging from 125 to 262.5 basis points, down from 135 to 310 under the prior facility.
Who's backing it? BMO Bank serves as administrative and collateral agent. BMO Capital MarketsDealroom has a profile for this one. Try Dealroom → and Bank of AmericaDealroom has a profile for this one. Try Dealroom → act as joint bookrunners, with MUFG BankDealroom has a profile for this one. Try Dealroom → joining as a joint lead arranger.
What's the endgame? Digi may use borrowings for working capital, capital expenditures, acquisitions, and general corporate purposes. The facility raises the maximum net leverage covenant from 3.0x to 3.50x, adding room to pursue deals.
"The increased capacity and improved terms provide us with greater financial flexibility to support our strategic growth initiatives, both organically and through acquisitions, while also reducing our cost of borrowing," said Jamie Loch, chief financial officer.
The signal: At $350 million, the facility sits near the top decile for deal size, underscoring lenders' appetite to back cash-generative IoT businesses as Digi positions for further acquisitions.
Image credit: IBM Research
