Davis Polk advised an ad hoc group of lenders holding approximately $700 million of term loans in connection with an amendment of Synchronoss Technologies, Inc.’s $1.1 billion senior secured credit facility, which effectuated a waiver of certain existing defaults thereunder in exchange for a consent fee, increased pricing and other terms.
Davis Polk worked with a steering committee of the lender group and Houlihan Lokey as financial adviser to negotiate the terms of the amendment following Synchronoss’ announcement on June 8, 2017, that it would need to restate its FY 2015 and 2016 financials.
On July 19, 2017, the lenders voted to amend the credit agreement in accordance with the terms negotiated by the Davis Polk and Houlihan-led group, which included an interest rate increase and significantly improved lender protections. The amendment contemplates an event of default if Synchronoss’ restated financials are not delivered within 90 days of execution of the amendment, as well as further rate increases if, among other things, Synchronoss does not announce a strategic transaction by December 15, 2017, or close any such announced transaction by June 15, 2018.
Headquartered in Bridgewater, New Jersey, Synchronoss Technologies provides cloud solutions and software-based activation for connected devices worldwide.
The Davis Polk team included partner Damian S. Schaible, counsel Michelle M. McGreal and associates Adam L. Shpeen, Sarah E. Levin, Jonah A. Peppiatt and Nathaniel Sokol. Partner Monica Holland provided credit advice. All members of the Davis Polk team are based in the New York office.