Electro Rent launches $534 million term loan at SOFR plus 550 bps

By Sara Rosenberg

New York, Nov. 14 – Electro Rent Corp. was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a $534 million amended and extended covenant-lite first-lien term loan due Nov. 1, 2024 that is talked at SOFR+10 basis points CSA plus 550 bps with a 1% floor and a 150 bps extension fee, according to a market source.

The extended term loan has 101 soft call protection for one year, the source said.

Deutsche Bank Securities Inc., Barclays, BMO Capital Markets and Goldman Sachs Bank USA are the bookrunners on the deal. Deutsche Bank is the administrative agent.

Proceeds will be used to extend an existing term loan due Jan. 31, 2024 and revise pricing from Libor plus 500 bps with a 1% floor.

Commitments/signatures are due at 5 p.m. ET on Thursday, the source added.

Electro Rent is a West Hills, Calif.-based provider of electronic testing and measurement equipment services.

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