Avid Technology plans $100 million term loan for Orad purchase

By Sara Rosenberg

New York, April 13 – Avid Technology Inc. has a received a commitment for a $100 million five-year senior secured term loan to help fund its acquisition of Orad Hi-Tec Systems Ltd., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the term loan is Libor plus 650 basis points with a 1% Libor floor and an original issue discount of 99.

The term loan has call protection of 102 in year one and 101 in year two.

Financial covenants in the loan include a maximum leverage ratio.

In addition to the term loan, the company plans on getting a $60 million secured revolving credit facility.

Providence Debt Fund III LP, Benefit Street Partners SMA-C LP, PECM Strategic Funding LP, Benefit Street Partners Capital Opportunity Fund LP and Benefit Street Partners SMA LM LP are the lenders on the loans.

Under the agreement, Orad is being purchased for €5.67 per share in an all-cash transaction, or about $60 million.

Closing is expected in June, subject to customary conditions, including approval by 75% of Orad’s shareholders.

Avid is a Burlington, Mass.-based provider of audio and video technology for media organizations and independent professionals. Orad is a Kfar Saba, Israel-based provider of 3D real-time graphics, video servers and related asset management solutions.

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