Electrical Components talks $40 million add-on term B at 99½ OID

By Sara Rosenberg

New York, Dec. 12 – Electrical Components International Inc. is talking its fungible $40 million add-on term loan B due May 2021 with an original issue discount of 99½, according to a market source.

As previously reported, pricing on the add-on loan is Libor plus 475 basis points with a step-down to Libor plus 450 bps when total net leverage is less than 3.5 times and a 1% Libor floor, in line with the existing term loan.

The add-on has 101 soft call protection until May 2015, the same as the existing term loan B.

Financial covenants include a total net leverage ratio of 5.75 times with step-downs.

Bank of America Merrill Lynch and GE Capital Markets Inc. are the joint lead arrangers on the deal that launched with a call on Thursday afternoon.

Commitments are due by 5 p.m. ET on Tuesday.

Proceeds will be used to fund the acquisition of Global Harness Systems Inc.

Closing is expected in January.

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications. Global Harness is a Bala Cynwyd, Pa.-based manufacturer of wire harnesses and panel assemblies for the bus, power generation, specialty vehicle and marine equipment end-markets.

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