CEVA lifts talk on $875 million term loan to Libor plus 550-575 bps

By Sara Rosenberg

New York, March 12 - CEVA Group plc increased price talk on its $875 million seven-year first-lien covenant-light term loan to Libor plus 550 basis points to 575 bps from Libor plus 500 bps, according to a market source.

Also, the original issue discount on the term loan widened to 98 from 99, and the soft call protection was changed to 102 in year one and 101 in year two, from 101 soft call protection for six months, the source said.

The term loan still has a 1% Libor floor.

Of the total term loan amount, $275 million is for a synthetic letter-of-credit facility.

The company's $1,125,000,000 credit facility (B2/B-) also includes a $250 million five-year revolver.

Commitments are due at 3 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., UBS Securities LLC and Apollo are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing credit facility and bond debt and pre-fund letters of credit.

The company is planning on repaying its $562 million of 8 3/8% senior secured notes due 2017, $210 million of 11 5/8% senior secured notes due 2016 and $12 million 11½% junior priority senior secured notes due 2018.

Other funds for the refinancing are expected to come from $400 million of new first-priority senior secured notes and $425 million of new first-and-a-half priority senior secured notes.

The tender offers for the notes expire on March 31.

CEVA is a London-based supply chain management company.

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