Citigroup, acting as sole arranger, syndication and administration agent, is seeking commitments of at least $35 million for a $175 million refinancing for K*TECH Electronics, a contract electronics manufacturing company based in Sugar Land, Texas. A banker close to the deal noted that a conference call two weeks ago kicked off the syndication process, but it could not be determined whether commitments have been raised.
The loan is a revolving credit priced at LIBOR plus 3% and is intended to provide working capital. It is open as a wholesale tier initially, though at a later stage could be open to retail players looking for smaller chunks, noted a banker. The credit, fully secured against K*TECH's assets, is a borrowing-based deal, he added. It is expected to close in three weeks, he noted.
Ted Ainsworth, cfo for K*TECH, referred calls to officials at Thayer Capital, a private equity investment firm based in Washington, D.C., that purchased K*TECH this month and is acting as primary sponsor. Officials at Thayer did not return calls. Citigroup was chosen following a request for proposals, said the banker, declining to name the other banks considered.