Electro Rent to launch $475 million first-lien term loan on Monday

By Sara Rosenberg

New York, Jan. 5 – Electro Rent Corp. is scheduled to hold a bank meeting at 10 a.m. ET at the New York Palace Hotel on Monday to launch a $475 million seven-year covenant-light first-lien term loan, according to a market source.

One-on-ones will be available to investors at the Palace after the bank meeting, and there will be a roadshow in New York and Boston on Tuesday and a roadshow in Los Angeles on Wednesday.

The company’s proposed $635 million credit facility also includes an $85 million revolver and a privately placed $75 million second-lien term loan, the source said.

Deutsche Bank Securities Inc., Barclays, BMO Capital Markets and Goldman Sachs Bank USA are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Microlease from Lloyds Development Capital.

Closing is expected this quarter.

Platinum Equity is the sponsor.

Electro Rent is a Van Nuys, Calif.-based provider of specialty testing and measurement equipment services. Microlease is a London-based equipment services and distribution provider to the test and measurement industry.

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