Bookrunners Banc of America Securities and Goldman Sachs are in the market with a deal to replace FCI‘s €150m nine-year term loan C priced at 325bp with a second add-on to its existing term loan B. An earlier €240m add-on to the FCI term loan B was due to close this week and has been flexed down from 250bp to 237.5bp.
The additional €150m add-on will also price at 237.5bp. Banks have until February 28 to agree the latest amendment. The €240m add-on replaced the mezzanine and PIK elements of last year’s buyout financing of the French electronic connector manufacturer. The FCI buyout by sponsor Bain Capital comprised a €40m seven-year term loan A tranche at 225bp, a €150m eight-year term loan B at 275bp and a €150m nine-year term loan C at 325bp, a €65m term loan D at 550bp, a €85m seven-year revolver at 225bp and the €100m acquisition and capex line at 225bp. The new €240m B loan is made up of €182m and US$76m.
By contrast with the existing A tranche, none of the new or existing B loan is denominated in Hong Kong dollars. The redundant tranches are being taken out at par plus prepayment fees and all existing investors are being offered a 20bp waiver fee.