Coherent plans $850 million credit facility for Rofin-Sinar purchase

By Sara Rosenberg

New York, March 17 – Coherent Inc. received a commitment for an $850 million senior secured credit facility to help fund its acquisition of Rofin-Sinar Technologies Inc., according to an 8-K filed with the Securities and Exchange Commission late Wednesday.

Barclays is the lead arranger and bookrunner on the deal.

The facility consists of a $100 million five-year revolver, a $375 million seven-year covenant-light term loan B and a $375 million-equivalent euro-denominated seven-year covenant-light term loan B.

Initial pricing on the revolver in expected at Libor plus 425 basis points with a 50 bps commitment fee, and pricing on the term B debt is expected at Libor plus 475 bps with a 1% Libor floor.

The term debt is anticipated to have 101 soft call protection for six months and amortization of 1% per annum.

Under the agreement, Rofin is being bought for $32.50 per share in cash, in a transaction valued at about $942 million.

Other funds for the transaction will come from cash on hand.

Closing is expected within six to nine months, subject to approval by Rofin stockholders, regulatory approvals in the U.S. and other countries as well as other customary conditions.

Coherent is a Santa Clara, Calif.-based provider of lasers and laser-based technology for scientific, commercial and industrial customers. Rofin is a Plymouth, Mich.-based developer, designer and manufacturer of lasers and laser-based system solutions for industrial material processing applications.

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