The new credit facility consists of a seven year transatlantic term loan ‘B’ of $830m and €200m. The dollar tranche was priced at 600bp over Libor, the euro tranche at 625bp over Euribor. Both had a 1.25% Libor/Euribor floor and original issue discount of 97.
JP Morgan, Goldman Sachs and Morgan Stanley arranged the deal.
The leads had originally marketed it with a margin of 475bp to 500bp and an OID of 99. Difficult market conditions in the wake of comments made by Ben Bernanke, chairman of the US Federal Reserve, on potential tapering of the Fed’s quantitative easing policy were responsible for the repricing, said a loans banker close to the deal.
The banker compared the concessions made on the deal’s margins and OID with similar difficulties experienced by Altice when it allocated its $1.034bn deal last week. The Luxembourg-based telecommunications investment company had to settle for an OID of 94, from a planned 99.5, and push the margin up to 450bp over, from an expected range of 375bp-400bp.
Technicolor is headquartered in Issy-les-Moulineaux, France, and made Ebitda of €512m in 2012.
