Electrical Components reworks term loan sizes and pricing

By Sara Rosenberg

New York, June 20 – Electrical Components International Inc. upsized its seven-year first-lien term loan to $583 million from $570 million and downsized its eight-year second-lien term loan to $115 million from $125 million, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 425 basis points from talk in the range of Libor plus 375 bps to 400 bps and pricing on the second-lien term loan was lifted to Libor plus 850 bps from talk in the range of Libor plus 775 bps to 800 bps, the source said.

In addition, the original issue discount on the first-lien term loan was changed to 99 from 99.5 and the discount on the second-lien term loan was revised to 96 from 99.

Furthermore, the hard call protection on the second-lien term loan was modified to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source continued.

As before, both term loans have a 0% Libor floor and the first-lien term loan has 101 soft call protection for six months.

The company’s now $798 million of credit facilities, up from $795 million, also include a $100 million five-year revolver.

Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Bank of America Merrill Lynch and Jefferies LLC are the arrangers on the deal, with Barclays as the administrative agent.

Final commitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Cerberus Capital Management LP from KPS Capital Partners LP. The $3 million in extra funds raised from the first-lien term loan upsizing will be used to cover the wider original issue discounts.

Closing is subject to customary conditions.

Electrical Components is a St. Louis-based manufacturer of wire harnesses, control boxes and value-added assembly services for consumer appliance and specialty-industrial applications.

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