Banks Stuck With $1.1 Billion Debt for HIG’s Converge Buyout (1)

Wall Street banks are stuck holding a $1.1 billion leveraged loan supporting HIG Capital’s buyout of Toronto-based Converge Technology Solutions Corp., the third time lenders have been left with debt tied to a large acquisition since the Trump administration announced sweeping tariffs earlier this month.

Bank of Montreal led a group of banks in committing debt for the buyout and had to fund the deal themselves when the acquisition closed on April 22, according to people with knowledge of the matter. The acquisition merged HIG’s portfolio company Mainline Information Systems with Converge to form Cardinal, according to a ...