MTS Systems upsizes to $350 million, eight-year notes set to price Thursday morning

By Paul A. Harris

Portland, Ore., July 10 – MTS Systems Corp. upsized its offering of eight-year senior notes (B3/B+) to $350 million from $300 million on Wednesday, according to market sources.

The deal is talked to yield in the 6% area, low to initial guidance in the 6¼% area, and is set to price on Thursday morning.

Wells Fargo Securities LLC is the left bookrunner. J.P. Morgan Securities LLC is the joint bookrunner.

HSBC Securities (USA) Inc., BofA Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Eden Prairie, Minn.-based supplier of test systems and industrial position sensors plans to use the proceeds to fully pay down outstanding amounts on its revolving credit facility and partially pay down its term loan B. The additional proceeds resulting from the $50 million upsizing of the deal will be used to repay debt under the term loan B, and for general corporate purposes.

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