Linxens to launch first- and second-lien term loans this week

By Sara Rosenberg

New York, July 14 – Linxens is set to hold a bank meeting at 10 a.m. ET in New York on Thursday and one at 12:30 p.m. BST in London on Friday to launch new first- and second-lien term loans, according to a market source.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Natixis and Nomura are the leads on the deal.

The debt consists of a $500 million seven-year first-lien covenant-light term loan, a €230 million seven-year first-lien covenant-light term loan and a $256 million eight-year second-lien covenant-light term loan, the source said.

Price talk on the U.S. first-lien term loan is Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, talk on the euro first-lien term loan is Euribor plus 475 bps with no floor and a discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and a discount of 99, the source continued.

The first-lien debt has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on July 30, the source added.

Proceeds will be used to help fund the buyout of the company by CVC Capital.

Linxens is a France-based designer and manufacturer of smart card connectors.

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