Plantronics to launch $1.38 billion credit facilities on Tuesday

By Sara Rosenberg

New York, May 11 – Plantronics Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch its $1,375,000,000 of credit facilities, according to a market source.

Wells Fargo Securities LLC is the left lead arranger on the deal.

The facility consists of a $100 million revolver and a $1,275,000,000 seven-year covenant-light term loan B, the source said.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Commitments are due at noon ET on May 31, the source added.

Proceeds will be used to help fund the acquisition of Polycom, to refinance existing debt and for general corporate purposes.

Other funds for the transaction will come from cash on hand.

Under the agreement, Polycom is being bought for $2 billion enterprise value consisting of an estimated $690 million of net debt and an estimated $948 million in cash and 6.352 million Plantronics shares.

Closing is expected by the end of the third quarter, subject to regulatory approvals and other customary conditions.

Plantronics is a Santa Cruz, Calif.-based audio communications company. Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

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