Teledyne gets $1 billion term loan to replace portion of bridge loan, restates revolver

By Wendy Van Sickle

Columbus, Ohio, March 4 – Teledyne Technologies Inc. entered on Thursday into a $1 billion term loan credit agreement and an amended and rested credit agreement that provides for up to $1.15 billion, according to an 8-K filed with the Securities and Exchange Commission.

New term loan agreement

The $1 billion term loan agreement with Bank of America, NA as administrative agent replaces $1 billion of commitments under the $4.5 billion bridge commitment letter dated Jan. 19. That 364-day senior unsecured bridge loan was to support the company’s acquisition of FLIR Systems Inc. and refinance some existing debt, as previously reported.

BofA Securities, JPMorgan Chase Bank, NA and U.S. Bank NA are the bookrunners and lead arrangers for the new term loan, which is due to mature on the fifth anniversary of its closing.

Loans will bear interest at Libor plus a margin ranging from 112.5 basis points to 187.5 bps, and there is a ticking fee ranging from 12.5 bps to 27.5 bps, depending on Teledyne’s ratings.

Restated agreement

Teledyne amended and restated its March 1, 2013 credit agreement to provide for up to $1.15 billion of borrowings if some conditions are met and up to $750 million otherwise.

There will be a $500 million sublimit for letters of credit if the conditions are met and a $100 million sublimit otherwise. There is a $10 million sublimit for swingline loans.

Bank of America is the administrative agent and BofA, JPMorgan Chase and U.S. Bank are the bookrunners and lead arrangers.

Borrowings bear interest at Libor plus 100 bps to 160 bps, and the ticking fee ranges from 12.5 bps to 27.5 bps, depending on ratings.

Teledyne is a Thousand Oaks, Calif.-based provider of instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. FLIR is a Wilsonville, Ore.-based industrial technology company focused on intelligent sensing solutions for defense and industrial applications.

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