Convergint has $1+ billion in junk debt putting significant pressure on the company. While the rapid debt buildup enabled the company to go on an unprecedented acquisition spree, the company is now facing a coronavirus crisis.
Inside this note, we examine:
Why Convergint had named themselves 'gopher sub'
What Convergint's debt rating is
Why the debt is so poorly rated, i.e., 'junk'
What mistakes the bond rater made that make the debt even risker
How coronavirus has impacted the company
Why Convergint has far more coronavirus risk than other integrators
How Convergint 'fun and laughter' contrasts with Convergint massive junk debt
What role Convergint's private equity owner can play in this crisis