MTS Systems expected term loan size increased to $490 million

By Sara Rosenberg

New York, June 8 – MTS Systems Corp. now intends to get a $490 million seven-year term loan, instead of a $390 million seven-year term loan, to help fund its acquisition of PCB Group Inc., according to a 424B5 filed with the Securities and Exchange Commission on Wednesday.

The company still plans on getting a $100 million five-year revolver with the term loan.

Other funds for the $580 million acquisition of PCB and the repayment of existing revolver borrowings are expected to consist of $72 million from a common stock offering and $100 million from a tangible equity units offering.

The company no longer intends to use a $250 million senior unsecured bridge loan, which was expected to be replaced with $250 million in senior notes, for the acquisition.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint lead arrangers and joint bookrunners on the $590 million credit facility.

Closing is expected in MTS’ fiscal fourth quarter that ends Oct. 1, subject to regulatory approvals and other customary conditions.

MTS is an Eden Prairie, Minn.-based supplier of high-performance test systems and position sensors. PCB is a Depew, N.Y.-based designer, manufacturer and distributor of sensor technologies.

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