Celestica cuts term B to $250 million, flexes to Libor plus 250 bps

By Sara Rosenberg

New York, Nov. 9 – Celestica Inc. downsized its non-fungible covenant-light term loan B due June 27, 2025 to $250 million from $350 million and increased pricing to Libor plus 250 basis points from Libor plus 225 bps, according to a market source.

Also, the original issue discount on the term loan B firmed at 99, the wide end of the 99 to 99.5 talk, the source said.

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

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead arrangers on the deal.

Allocations are expected on Tuesday, the source added.

Proceeds will be used to fund the acquisition of Impakt Holdings LLC for $329 million from Graycliff Partners, to pay related fees and expenses and for general corporate purposes.

The remainder of the financing will be funded under the company’s revolving credit facility due to the term loan B downsizing.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Celestica is a Toronto-based designer and manufacturer of electronic components. Impakt is a Santa Clara, Calif.-based provider of manufacturing solutions for the display, semiconductor, solar and other capital equipment industries.

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