BMO-led group seeks to shed stuck debt for HIG’s Converge buyout

A consortium of banks, led by Bank of Montreal, is reportedly planning to relaunch a loan to support HIG Capital’s acquisition of Converge Technology Solutions Corp. This move comes after the initial attempt to sell a $1.1 billion leveraged loan in March was derailed by market volatility caused by tariff announcements.

According to sources familiar with the matter, discussions are underway to secure an approximately $850 million leveraged loan for the buyout. While the terms of the new loan offering are subject to change, the banks involved are currently engaging with potential investors to finalize the details.

Following the challenges faced in March, when credit markets seized up due to tariff-related uncertainties, the banks were forced to step in and fund the acquisition themselves. As a result, they will retain a portion of the debt in a second-out tranche.

The acquisition will see HIG Capital merge Mainline Information Systems with Converge to create Pellera Technologies. This strategic move is part of HIG’s broader investment strategy in the technology sector.

In the wake of the tariff-induced market volatility, several other debt deals were also affected, including those for ABC Technologies Holdings Inc. and Patterson Cos. However, banks have since managed to syndicate $2 billion of debt for the Patterson buyout and are in the process of offloading $2.2 billion of ABC Technologies’ buyout loans to private credit firms.

The relaunch of the loan supporting HIG Capital’s buyout of Converge Technology Solutions Corp. signals a renewed confidence in the deal and the broader economic environment. As discussions progress and the terms of the loan are finalized, all parties involved will be closely monitoring market conditions to ensure a successful transaction.

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