Electrical Components to launch $40 million term loan B on Tuesday

By Sara Rosenberg

New York, May 16 – Electrical Components International Inc. is set to hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $40 million incremental term loan B due May 2021, according to a market source.

Bank of America Merrill Lynch is the lead arranger on the deal.

Pricing on the incremental term loan matches existing term loan pricing at Libor plus 475 basis points with a 1% Libor floor, the source said.

The original issue discount on the incremental loan is still to be determined.

The debt includes a total net leverage covenant.

Proceeds will be used to fund the acquisition of Whitepath Fab Tech Inc.

Closing is expected this month.

Electrical Components, a portfolio company of KPS Capital Partners LP, is a St. Louis-based manufacturer of wire harnesses and provider of value-added assembly services for the home appliance industry. Whitepath is an Ellijay, Ga.-based supplier of control boxes, wire harnesses and value added assembly services to the HVAC industry.

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