CEVA ups U.S. term loan to about $1 billion, adds €50 million tranche

By Sara Rosenberg

New York, March 13 - CEVA Group plc upsized its seven-year first-lien covenant-light term loan to $1,015,000,000 from $875 million and added a €50 million seven-year first-lien covenant-light term loan to the capital structure, according to a market source.

Also, pricing on the U.S. term loan firmed at Libor plus 550 basis points, the tight end of revised talk of Libor plus 550 bps to 575 bps but up from initial talk of Libor plus 500 bps, the source said.

And, the original issue discount on the U.S. term loan was changed to 98½ from revised talk of 98 and initial talk of 99, the source continued.

The U.S. term loan, of which $275 million is for a synthetic letter-of-credit facility, still has a 1% Libor floor and soft call protection of 102 in year one and 101 in year two.

The call protection had been modified earlier from 101 soft call for six months.

Meanwhile, pricing on the new euro term loan tranche is Euribor plus 550 bps with a 1% floor and a discount of 981/2, and there is soft call protection of 102 in year one and 101 in year two.

The company's credit facility also includes a $250 million five-year revolver.

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 $300 million of new first-priority senior secured notes, downsized from $400 million, and $325 million of new first-and-a-half priority senior secured notes, downsized from $425 million, the source added.

The tender offers for the notes expire on March 31.

CEVA is a London-based supply chain management company.

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