Linxens lowers pricing on first- and second-lien euro term loans

By Sara Rosenberg

New York, July 30 – Linxens reduced pricing on its €200 million seven-year first-lien covenant-light term loan to Euribor plus 425 basis points from revised talk of Euribor plus 450 bps and initial talk of Euribor plus 475 bps, according to a market source.

In addition, the company removed from the euro first-lien term loan a recently added 25 bps pricing step-down at first-lien leverage of 4.25 times, the source said.

Also, pricing on the €35 million eight-year second-lien covenant-light term loan was lowered to Euribor plus 825 bps from Euribor plus 850 bps, the source continued.

The euro second-lien term loan still has a 1% floor.

The company’s $550 million seven-year first-lien covenant-light term loan is still priced at Libor plus 400 bps with a 25 bps step-down when first-lien leverage is 4.25 times and a 1% Libor floor, and the $200 million eight-year second-lien covenant-light term loan is still priced at Libor plus 850 bps with a 1% Libor floor.

The original issue discount on all of the first-lien term debt remained at 99.5, and the discount on the second-lien loans remained at 99.

As before, the euro first-lien term loan has no floor, all of the first-lien debt has 101 soft call protection for six months, and all of the second-lien debt has call protection of 102 in year one and 101 in year two.

Earlier in syndication, the U.S. first-lien term loan was upsized from $500 million as the euro first-lien term loan was downsized from €230 million, the discount on the first-lien loans was tightened from 99, and the second-lien term loan saw U.S. and euro tranching emerge versus the debt being described as a $256 million loan at launch.

Included in the debt is a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments were due at noon ET on Thursday.

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

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.

© 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.