Oberthur Technologies to launch €2.4 billion credit facility this week

By Sara Rosenberg

New York, Nov. 28 – Oberthur Technologies Group SAS is scheduled to hold a bank meeting in London on Wednesday and a bank meeting at 10 a.m. ET in New York on Thursday to launch a €2.4 billion equivalent senior secured credit facility, according to a market source.

The facility consists of a €300 million multi-currency six-year revolver and a €2.1 billion seven-year U.S. and euro term loan, the source said.

Deutsche Bank, Goldman Sachs International and Morgan Stanley are jointly leading syndication on the euro tranche, and Goldman Sachs is the left lead bookrunner on the U.S. tranche.

Pricing on the revolver is Euribor plus 400 basis points with no floor. Term loan pricing will come out with the bank meetings.

Proceeds will be used to help fund the acquisition of Morpho for a total enterprise value of €2.5 billion and to refinance existing Oberthur debt, including €190 million senior notes due 2020.

Commitments are due on Dec. 14, the source added.

Pro forma net total leverage is 4.3 times based on pro forma September 2016 last-12-months EBITDA of €461 million.

Oberthur Technologies is a France-based provider of chip-based digital authentication products and solutions with an expertise in digital security processes, software and cryptography. Morpho is a provider of security and identity solutions.

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