Oberthur releases talk on €2.1 billion U.S. and euro term loan

By Sara Rosenberg

New York, Nov. 30 – Oberthur Technologies Group SAS is talking its €2.1 billion seven-year U.S. and euro term loan at Libor/Euribor plus 425 basis points to 450 bps with no floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s €2.4 billion equivalent senior secured credit facility (B2/B-/B+) also includes a €300 million multi-currency six-year revolver.

Pricing on the revolver is Euribor plus 400 bps with no floor.

The credit facility launched to European investors with a bank meeting in London on Wednesday and will launch to U.S. investors with a bank meeting at 10 a.m. ET in New York on Thursday.

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.

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.

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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