Vertiv Announces the Completion of Debt Refinancing Activities

COLUMBUS, Ohio--()--Vertiv Holdings Co (NYSE: VRT) announced the closing of a new seven-year $2.2 billion term loan, the proceeds of which were used to pay in full its previous term loan and redeem in full its high-yield bonds, including its 9.25% senior notes, 12.0%/13.0% PIK-toggle senior notes and 10.0% second-lien notes. The new term loan bears annual interest at LIBOR plus applicable margin of 3.0% (currently 4.4% all-in), which applicable margin is 1.0% lower than under the previous term loan. In addition, Vertiv closed an amendment on its $455 million asset-based lending (ABL) credit facility which, among other changes, extended the maturity to March 2, 2025 and lowered the applicable margin on loans thereunder by 0.25%.

Concurrently with the closing of the new term loan, Vertiv executed interest rate swaps on a notional amount of $1.2 billion in 2020, and $1.0 billion in the remaining tenor of the term loan. Combined with the economics of the term loan, this results in an all-in rate of approximately 4.1%. The swap transactions exchange floating term loan interest payments for fixed rate interest payments on the notional amount to reduce interest rate volatility.

“The closing of this refinancing activity is a significant milestone for Vertiv. This refinancing, in conjunction with the significant paydown of debt with proceeds from the SPAC transaction, will reduce our annual run-rate cash interest by almost $160 million. Our refinanced capital structure provides tremendous flexibility to support our strategic initiatives going forward,” said David J. Fallon, Chief Financial Officer for Vertiv.

For more information on the refinance completion, visit https://investors.vertiv.com/financials/docs/sec-filings-details/default.aspx?FilingId=13974618

About Vertiv

Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to ensure its customers’ vital applications run continuously, perform optimally and grow with their business needs. As Architects of Continuity™, Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Columbus, Ohio, USA, Vertiv employs approximately 20,000 people and does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Source: Vertiv Holdings Co

Contacts

For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
T +1 614-841-6776
E: Lynne.Maxeiner@Vertiv.com

For media inquiries, please contact:
Sara Steindorf
FleishmanHillard for Vertiv
T +1 314-982-1725
E Sara.Steindorf@fleishman.com

Release Summary

Vertiv Holdings Co (NYSE: VRT) announced the closing of a new seven-year $2.2 billion term loan.

Contacts

For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
T +1 614-841-6776
E: Lynne.Maxeiner@Vertiv.com

For media inquiries, please contact:
Sara Steindorf
FleishmanHillard for Vertiv
T +1 314-982-1725
E Sara.Steindorf@fleishman.com