Ultra Electronics moves funds between U.S. and euro term loans

By Sara Rosenberg

New York, Nov. 17 – Ultra Electronics upsized its U.S. seven-year term loan B to $883.5 million from $855 million and downsized its euro seven-year term loan B to €450 million from €475 million, according to a market source.

Additionally, pricing on the U.S. term loan was set at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and the original issue discount was revised to 99.75 from 99.5, the source said.

Pricing on the euro term loan firmed at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor and a discount of 99.5, and both loans (B1/B-) still have 101 soft call protection for six months.

Barclays is the physical bookrunner on the U.S. term loan. Barclays, BNP Paribas Securities Corp., Credit Suisse and HSBC are physical bookrunners on the euro term loan. Goldman Sachs, Jefferies LLC, Lloyds, Morgan Stanley Senior Funding Inc., NatWest, RBC Capital Markets, SMBC and UniCredit are mandated lead arrangers. Credit Suisse is the administrative agent.

Proceeds will be used to help fund the acquisition of the company by Advent, refinance existing debt and pay transaction fees and expenses.

Ultra Electronics is a London-based manufacturer of electronic and electromechanical systems, sub-systems, and products for defense, security and aerospace applications.

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