Daisytek International, a wholesale distributor of computer and office supplies, has signed a $120 million credit facility to fund operations and acquisitions, replacing an existing $105 million facility due to expire at the end of the month. George Maney, cfo, says the new facility allows the company to borrow against assets and cash flow, as opposed to borrowing against only assets before. "It provides us the flexibility to carve out receivables and inventories and borrow an additional $50 million. It allows us to double-dip," he explained. BANK ONE and Bank of America lead the new deal, which went out to bid. Chase Manhattan Bank led the former deal and opted not to bid for the new facility. "Chase wanted to stay with the old borrowing-based facility," Maney said, adding that none of the banks in the old syndicate are in the new one for the same reason. He explained that the company's management changed last summer when PFS Web spun off from the company. The company pursued the new financing in part to fund acquisitions.
The three-year facility carries pricing ranging from 105-175 basis points above LIBOR. Maney says the company is satisfied with the pricing. The company has additional facilities in Australia and Canada for $25 million each.