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Arris gets $800 million term loan A-1 commitment for Pace purchase
By Sara Rosenberg
New York, April 22 – Arris Group Inc. has received a commitment for an $800 million incremental five-year term loan A-1 to help fund its acquisition of Pace plc, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.
Bank of America Merrill Lynch is the lead bank on the deal.
Covenants include a minimum consolidated interest coverage ratio of 3.5 times and a maximum consolidated net leverage ratio of 3.5 times.
The company also plans on amending and extending its existing credit facility with the transaction.
Estimated pro forma leverage is less than 2.5 times.
Under the agreement, Pace is being purchased for aggregate stock and cash consideration of $2.1 billion as Pace shareholders will receive £1.325 of cash and a fixed exchange ratio of 0.1455 of a share in the combined company for each Pace share.
Closing is expected late this year, subject to the satisfaction of customary conditions, including Arris and Pace shareholder approval and regulatory approvals.
Arris is a Suwanee, Ga.-based IP, video and broadband technology company. Pace is a U.K.-based provider of technology solutions to the PayTV and broadband industries.
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