Electronics For Imaging sets first-, second-lien term loan OIDs at 95

By Sara Rosenberg

New York, July 2 – Electronics For Imaging Inc. firmed the original issue discount on its $875 million seven-year first-lien term loan (B2/B-) at 95, the wide end of revised talk of 95 to 96 and wide of initial talk of 99, according to a market source.

In addition, the company set the discount on its $225 million eight-year second-lien term loan (Caa2/CCC+) at 95, the wide end of revised talk of 95 to 96 and wide of initial talk of 98, the source said.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months.

The first-lien term loan has 50 bps MFN for life.

Pricing on the first-lien term loan is Libor plus 500 basis points with a 0% Libor floor, and pricing on the second-lien term loan is Libor plus 900 bps with a 0% Libor floor.

Earlier in syndication, pricing on the first-lien term loan was set at the high end of the Libor plus 475 bps to 500 bps talk and pricing on the second-lien term loan finalized at the high end of the Libor plus 875 bps to 900 bps guidance.

As before, the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1.2 billion of credit facilities also include a $100 million revolver (B2/B-).

RBC Capital Markets, KKR Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp. and Societe Generale are the joint bookrunners on the deal, with RBC the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Siris Capital Group LLC for $37.00 per share in cash. The transaction is valued at about $1.7 billion.

Other funds for the buyout will come from up to $690 million of equity.

Closing is expected by the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

Electronics For Imaging is a Fremont, Calif.-based technology company focused on the transformation to digital imaging from analog.

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