Technicolor sets price talk for $1.26 billion dual-currency term loans

By Paul A. Harris

Portland, Ore., April 15 - Technicolor (Tech Finance & Co. SCA) released pricing details on the approximately $1.26 billion equivalent repricing of its term loan due July 10, 2020 (B2/B+) on Tuesday, according to a market source.

Tranches sized at $844 million and €321 million are talked at 400 to 425 basis points spreads above Libor, with 1% Libor floors, priced at par.

The existing dollar-denominated loan was priced with a 600 bps spread and a 1.25% Libor floor.

New money accounts are being offered a 50 cent discount.

A trader calculated that factoring in the call premium for the existing loan, the spreads, Libor floors and reoffer prices, all lenders, new and existing, would be getting into the repricing deal at approximately equal prices.

Both tranches have 101 soft call protection for six months.

Commitments are due on April 23. The deal is expected to close on April 30.

Morgan Stanley Senior Funding Inc. is the sole bookrunner.

Technicolor is a technology company focused on the media and entertainment sector.

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