Orbotech ups spread on $300 million term loan B to Libor plus 400 bps

By Sara Rosenberg

New York, July 31 – Orbotech Ltd. increased pricing on its $300 million six-year covenant-light term loan B (B1/B+) to Libor plus 400 basis points from Libor plus 375 bps, according to a market source.

Also, the original issue discount on the term loan widened to 99 from the 99½ area and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the roughly $370 million acquisition of SPTS Technologies Group Ltd., a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry, from Bridgepoint and others.

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

Closing is expected in the third quarter, subject to certain conditions.

After giving effect to the term loan B borrowing, total leverage will be around 2.9 times and net total leverage will be around 1.7 times, based on trailing 12-month combined business adjusted EBITDA of $102 million as of March 31.

Orbotech is a Yavne, Israel-based provider of yield-enhancing and production solutions, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components.

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