Technicolor firms term debt repricing at Libor/Euribor plus 400 bps

By Sara Rosenberg

New York, June 3 – Technicolor (Tech Finance & Co. SCA) finalized the repricing of its $763 million term loan due July 10, 2020 and its €301 million term loan due July 10, 2020 at Libor/Euribor plus 400 basis points, the wide end of the Libor/Euribor plus 375 bps to 400 bps talk, according to a market source.

In addition, the original issue discount on the loans came at 99.75 for everyone, versus talk of 99.75 for existing lenders and 99.5 for new money, and the 101 soft call protection was extended to one year from six months, the source said.

The loans still have a 1% floor.

Goldman Sachs and J.P. Morgan Securities LLC are the leads on the deal, with Goldman left lead on the U.S. term loan and JPMorgan left lead on the euro term loan.

The repricing is taking the loans down from Libor/Euribor plus 450 bps with a 1% floor.

In addition, the company is amending its credit facility to increase its investment capacity in joint-ventures, reduce restrictions on raising new debt, raise the gross debt to EBITDA financial covenant to four times from 3.5 times and lift the dividend payment basket to €150 million between the closing date of the repricing and June 2020.

Closing is expected on Friday.

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

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