Amphenol to launch $750 million credit facility Thursday

By Sara Rosenberg

New York, April 9 - Amphenol Corp. is scheduled to launch a $750 million credit facility on Thursday, according to a syndicate source. Deutsche Bank and UBS Warburg are the lead banks on the deal.

The loan consists of a $125 million five-year revolver with an interest rate of Libor plus 200 basis points, a $125 million five-year term loan A with an interest rate of Libor plus 200 basis points and a $500 million seven-year term loan B with an interest rate of Libor plus 250 basis points, the syndicate source said.

This facility was expected to hit the market a few weeks ago. However, the syndicate source explained that the U.S. was on the verge of invading Iraq at the time and since this is an "opportunistic refinancing" the syndicate decided to hold off for a bit and watch the market for signs of improvement.

"Now is a good time. Technicals are firming and prices are coming down," he added.

Proceeds from the loan will be used to refinance the existing credit facility and to repay $144 million of 9 7/8% senior subordinated notes. The pro rata portion of the existing loan ahs an interest rate of Libor plus 75 basis points and the existing term loan B has an interest rate of Libor plus 150 basis points, so this new deal will be a "nice premium to the guys who already have it," the source said.

Although pricing is higher for the company on the new deal, the source explained that this is a good time for the facility to hit the market since the existing pro rata portion of the facility is scheduled to mature in 2004 and would move to "current" on the balance sheet next quarter. This refinancing is something the company needed to do in the future and "we thought this was a good time to do it," he concluded.

Moody's Investors Service rated the facility at Ba2 and Standard & Poor's rated the deal at BB+, according to the source.

Amphenol is a Wallingford, Conn. producer of electronic and fiber optic connectors, cable and interconnect systems.

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