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ETC Group reduces U.S. term loan size, adds euro term loan
By Sara Rosenberg
New York, Aug. 3 – ETC Group (EOS Finco) downsized its U.S. senior secured seven-year first-lien term loan to $540.02 million from €972.4 million equivalent and added a €475 million euro senior secured seven-year first-lien term loan to the capital structure, according to a market source.
Also, pricing on the U.S. term loan firmed at SOFR plus 600 basis points, the wide end of the SOFR plus 575 bps to 600 bps talk, a 25 bps step-down at 4.25x first-lien net leverage was removed, and the 101 soft call protection was extended to one year from six months, the source said.
The U.S. term loan still has a 25 bps step-down at 4.75x first-lien net leverage, a 0.5% floor, an original issue discount of 92, and amortization of 2.5% per annum in years one and two and 5% per annum thereafter.
Pricing on the newly added euro term loan is Euribor plus 625 bps with 25 bps step-downs at 4.75x and 4.25x first-lien net leverage, a 0% floor and an original issue discount of 92.
The euro term loan has no amortization.
Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas Securities Corp., Bank of Ireland, Credit Agricole, Mizuho, MUFG and Standard Chartered are the arrangers on the deal (B2/B).
Recommitments were scheduled to be due at noon ET on Wednesday, the source added.
Proceeds will be used to help fund the acquisition of a majority interest in the company by Cinven from Carlyle and to pay related fees and expenses. Carlyle will hold a significant minority stake in ETC.
ETC is a France-based designer, procurer and distributor of materials, tools and equipment used by the telecom industry.
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