MKS Instruments seven-year incremental term loan prices at 99

By Paul A. Harris

Portland, Ore., Jan. 18 – MKS Instruments Inc.’s $650 million seven-year incremental first-lien term loan B (Ba1/BB+) priced at Libor plus 225 basis points with an original issue discount of 99 and allocated, a market source said on Friday.

Earlier in the week, MKS Instruments reworked the deal, flexing pricing to Libor plus 225 bps from Libor plus 250 bps and adjusted the original issue discount to 99 from talk in the range of 98 to 98.5.

The incremental term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $750 million of credit facilities also include a $100 million five-year ABL revolver.

Barclays and HSBC Securities (USA) Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Electro Scientific Industries Inc. for $30.00 per share in cash, or about $1 billion.

Closing is expected this quarter.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions to improve performance and productivity of advanced manufacturing processes. Electro Scientific is a Portland, Ore.-based supplier of photonic and laser systems to microelectronics customers.

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