Corsair reveals first- and second-lien term loan price talk with launch

By Sara Rosenberg

New York, Sept. 6 – Corsair announced price talk on its $235 million seven-year first-lien term loan (B2/B) and $65 million eight-year second-lien term loan (Caa1/CCC+) with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $350 million of credit facilities also provide for a $50 million five-year revolver (B2/B).

Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are the lead banks on the deal.

Commitments are due on Sept. 20, the source added.

Proceeds will be used to help fund the buyout of the company by EagleTree Capital from Francisco Partners and several minority shareholders.

As part of the transaction, the company’s founder and chief executive officer Andy Paul will maintain a sizable equity stake in Corsair and IMCO (Investment Management Corp. of Ontario) and the Honeywell pension will co-invest alongside EagleTree.

Closing is subject to customary conditions.

Corsair is a Fremont, Calif.-based provider of high performance branded computer products, including memory, components, peripherals and complete systems.

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