IPC Systems Announces Global Agreement to Reduce Debt and Provide Significant Equity to Support Long-Term Business Plan
NEW YORK, October 1, 2021 / PRNewswire / – IPC Systems, Inc. (“IPC” or the “Company”), a leading global provider of secure and compliant communication and networking solutions for global financial markets, announced today hui having entered into a transaction support agreement (the “Agreement”) with its key stakeholders, which will reduce the Company’s debt by more than $ 400 million, extend the maturity of its debt by 5 years and bring in new capital of $ 125 million provide the necessary resources for investment in long-term growth strategies.
Bob santella, CEO of IPC, said, “The balance sheet improvements we are announcing today will allow us to continue to build a strong future for IPC and to strengthen our partnership with employees, customers, suppliers and other relationships. strategic. I am particularly excited to accelerate our efforts. providing our customers with new and innovative solutions for their critical challenges – through both organic and inorganic actions in the months and years to come. We are also encouraged and grateful to have the support of our shareholders and lenders, which reflects their high level of confidence in us. “
Parties to the Agreement include: funds managed by Strategic Value Partners, LLC and its affiliates (“SVPGlobal“), a lender who, as a result of this transaction, will become a major sponsor and shareholder of shares; the affiliates of Centerbridge Partners, LP (“Centerbridge”), the Company’s current private equity sponsor, who will continue to be a significant shareholder; and some of its current major lenders, including HPS Investment Partners, LLC. HPS will continue to be IPC’s primary lender and lead a single group of lenders in a new streamlined debt structure.
Victor Khosla, Founder and Chief Investment Officer of SVPGlobal, said: “We firmly believe that with today’s agreement, IPC will maintain its position as a global leader in communication and networking solutions for the long term. We are delighted to renew our partnership with IPC and, in our more active role, we look forward to supporting management as they continue to provide the top-notch services for which they are known. “
Jared hendricks, Senior Managing Director of Centerbridge, said, “IPC has an excellent track record of delivering innovative solutions to the world’s leading financial institutions, and Bob has done a tremendous job at the helm of the company since joining in 2018. We look forward to continuing to support IPC, Bob and his leadership team in their next phase of innovation and growth. “
Mr. Santella continued, “At IPC, we pride ourselves on helping our clients anticipate changes and solve problems, and this is also true of the way we run our multiple award-winning business. For nearly fifty years, we have evolved and adapted to grow and better serve our customers in a dynamic and evolving industry. The actions we are announcing today will give the company the financial foundation to continue setting the standard with industry expertise, exceptional service and comprehensive technology solutions for many years to come.
“We are grateful to our employees for their hard work and continued dedication to IPC clients throughout this process. We also thank our customers, suppliers and other business partners for their support as we focus on aligning IPC’s financial structure for long-term success, ”concludes Santella.
IPC’s professional advisors included Kirkland & Ellis and Evercore.
About the IPC
IPC is a technology and services leader that powers global financial markets. With a customer-centric mindset, IPC brings together one of the largest and most diverse global financial ecosystems spanning all asset classes and market players. As a catalyst for this ecosystem, IPC enables the community to interact, transact and respond to changes and challenges in the marketplace, and we collaborate with our clients to help them make them secure, productive, compliant. and connected. Visit www.ipc.com and follow us on LinkedIn and Twitter (@IPC_Systems_Inc).
SVPGlobal is a global investment firm focused on distressed debt, special situations and private equity opportunities with over $ 17 billion in assets under management. The company, created by Victor Khosla in 2001, had around 130 employees, including around 50 investment professionals, located in its main offices in Greenwich (CT), London and a presence in Tokyo. It was one of the first struggling American companies to establish a European office, opening in London in 2004. In total, SVPGlobal invested more than $ 36 billion of capital since its creation in 2001, of which $ 16 billion in Europe, and has conducted over 150 significant transactions. SVPGlobal is a signatory of the Principles for Responsible Investment (PRI) supported by the United Nations. The PRI are recognized as the leading global network of investors committed to integrating environmental, social and governance (ESG) considerations into their investment decisions. Learn more about www.svpglobal.com.
Centerbridge is a private investment management firm that uses a flexible approach across all investment disciplines – private equity, private credit and real estate – with the aim of developing the most attractive opportunities for our investors. The firm was founded in 2005 and from July 1, 2021 around $ 31 billion in capital under management with offices in new York and London. Centerbridge is committed to partnering with world-class management teams in targeted industry sectors and geographies. For more information, please visit www.centerbridge.com.
Ganesh Iyer, Marketing and Strategy Director
Juliana Correa, Marketing director
Certain statements contained in this press release may be forward-looking statements. All forward-looking statements are based on current expectations, assumptions, estimates and projections and involve known and unknown risks and uncertainties. Actual results may differ materially from any future results expressed or implied by these forward-looking statements.
SOURCE IPC Systems, Inc.