Electrical Components widens $115 million second-lien loan OID to 94

By Sara Rosenberg

New York, June 21 – Electrical Components International Inc. changed the original issue discount on its $115 million eight-year second-lien term loan to 94 from revised talk of 96 and initial talk of 99, according to a market source.

Pricing on the second-lien term loan is still Libor plus 850 basis points with a 0% Libor floor, and the debt still has hard call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $798 million of credit facilities also include a $100 million five-year revolver and a $583 million seven-year first-lien term loan.

The first-lien term loan is priced at Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99 and has 101 soft call protection for six months.

Earlier in syndication, the first-lien term loan was upsized from $570 million, pricing was increased from talk in the range of Libor plus 375 bps to 400 bps and the discount widened from 99.5, and the second-lien term loan was downsized from $125 million, pricing was lifted from talk in the range of Libor plus 775 bps to 800 bps, and the hard call protection was modified from 102 in year one and 101 in year two.

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.

Allocations are expected on Friday, 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.