Technicolor sets U.S. and euro term loan B tranche sizes, spreads

By Sara Rosenberg

New York, March 24 – Technicolor SA firmed the size of its U.S. senior secured covenant-light term loan B (Ba3/BB-) due December 2023 at $300 million and its euro senior secured covenant-light term loan B (Ba3/BB-) due December 2023 at €275 million, according to a market source.

At launch, the debt was said to total €560 million-equivalent U.S. and euro term loans, with tranche sizes to be determined.

Also, pricing on the U.S. term loan firmed at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, and pricing on the euro term loan finalized at Euribor plus 300 bps, the low end of the Euribor plus 300 bps to 325 bps talk, the source said.

Both term loans still have a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The U.S. loan has amortization of 1% per annum, and the euro loan has no amortization.

Goldman Sachs International, Morgan Stanley Senior Funding Inc. and Natixis are the joint physical bookrunners on the deal. JPMorgan is the administrative agent.

Proceeds will be used to refinance existing term loan debt due in 2020.

Closing is expected on March 31, the source added.

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

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