Smart Modular to launch $350 million credit facility on Thursday

By Sara Rosenberg

New York, June 21 - Smart Modular Technologies Inc. has scheduled a bank meeting for 9:30 a.m. ET at the W Hotel in New York on Thursday to launch its proposed $350 million senior secured credit facility, according to a market source.

J.P. Morgan Securities LLC and UBS Securities LLC are the lead arrangers and bookrunners on the deal.

The facility consists of a $300 million seven-year covenant-light first-lien term loan (B2/B+) and a $50 million five-year first-lien first-out revolver (B1).

Official price talk is still to be determined, the source said. However, according to filings with the Securities and Exchange Commission, the facility is expected to be priced at Libor plus 450 basis points with a 1.25% Libor floor.

The filings also said that the term loan is expected to be offered at an original issue discount of 991/2, and the revolver is expected to have a 50 bps unused fee and be offered with a 100 bps upfront fee.

There is a $25 million accordion feature.

Proceeds, along with up to $381 million of equity, will be used to help fund the buyout of the company by Silver Lake Partners and Silver Lake Sumeru for $9.25 per share in cash. The transaction is valued at about $645 million.

Closing is expected in the third quarter, subject to receipt of shareholder and regulatory approval.

Smart Modular is a Newark, Calif.-based manufacturer of memory modules and solid state storage products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.