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CEVA trims term B to $475 million, flexes to Libor plus 500 bps
By Sara Rosenberg
New York, Feb. 20 – CEVA Logistics downsized its covenant-light term loan B due August 2025 to $475 million from $825 million and increased pricing to Libor plus 500 basis points from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.
Additionally, the company removed a 25 bps pricing step-down at 0.25 times inside closing leverage and widened the original issue discount to 97 from talk in the range of 98 to 99, the source said.
Also, the 101 soft call protection on the term loan was extended to one year from six months and the 50 bps MFN was set for life with the elimination of a 12-month sunset.
The term loan still has a 0% Libor floor.
HSBC Securities (USA) Inc. is the left lead arranger on the deal, BNP Paribas is a global coordinator and Societe Generale is a joint lead arranger and joint bookrunner. HSBC will replace Credit Suisse as the administrative agent shortly after closing.
Recommitments are due at 3 p.m. ET on Thursday, the source continued.
Proceeds will be used to refinance an existing $475 million term loan B due August 2025 in connection with CMA CGM SA’s tender offer for CEVA’s shares. The existing term loan is priced at Libor plus 375 bps with a 0% Libor floor.
Due to the term loan downsizing, the refinancing of any portion of the company’s €300 million 5¼% senior secured notes due August 2025 will now be dealt with independently by accessing alternative markets, including a potential consent, a new U.S. high-yield bond, a new euro term loan B or a new euro high-yield bond, the source added.
CEVA is a Switzerland-based third-party logistics company.
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