MKS trims spread on $650 million term loan to Libor plus 225 bps

By Sara Rosenberg

New York, Jan. 17 – MKS Instruments Inc. reduced pricing on its $650 million seven-year incremental first-lien term loan B (Ba1/BB+) to Libor plus 225 basis points from Libor plus 250 bps, according to a market source.

Also, the original issue discount on the incremental term loan was changed to 99 from talk in the range of 98 to 98.5, the source said.

The incremental term loan still has a 0% Libor floor and 101 soft call protection for six months.

Commitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

The company’s $750 million of credit facilities also include a $100 million five-year asset-based revolving credit facility.

Barclays and HSBC Securities (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Electro Scientific Industries Inc. for $30.00 per share in cash, or about $1 billion.

Other funds for the transaction will come from cash on hand.

Closing is expected this quarter.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions to improve performance and productivity of advanced manufacturing processes. Electro Scientific is a Portland, Ore.-based supplier of photonic and laser systems to microelectronics customers.

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