Digi International has expanded and refinanced its senior secured revolving credit facility to $350 million, up from $250 million, adding $100 million of borrowing capacity.
The company said the new facility also lifts its accordion feature, giving it access to an additional $130 million or 100% of trailing 12-month adjusted EBITDA, whichever is greater. That takes total potential borrowing capacity to as much as $480 million, before any further incremental amount allowed under the leverage test.
The maturity has been pushed out to Aug. 27, 2031.
Pricing has improved as well. SOFR margins now range from 125 to 262.5 basis points, down from 135 to 310 basis points under the prior facility.
Digi also increased its maximum total net leverage covenant to 3.50x from 3.0x. The company said it has an acquisition holiday provision of 0.50x for four fiscal quarters after a qualifying acquisition. The minimum interest coverage ratio stays at 3.00x.
The financing gives Digi more room to fund working capital, capital expenditures, acquisitions, restricted payments and other corporate purposes. The market has reacted to these announcements by moving the company's shares -3.74% to a price of $72.135. Check out the company's full 8-K submission here.
