Isola USA has turned to UBS and Goldman Sachs for a $325 million senior secured credit facility to recapitalize the company. Syndication of a six-year, $50 million revolver; a six-year, $180 million first-lien term loan and a seven-year, $95 million second-lien term loan launched last Tuesday, according to a banker. Price talk on the first lien is LIBOR plus 4% and LIBOR plus 7% on the second lien.
"It's one of these deals they have to add back in a bunch of stuff to make the deal work," said one portfolio manager. "There's lot of leverage and synergies that you need to get there free cash flow is negative. It's a tough industry." The company's leverage ratio could not be determined.
Isola USA is a subsidiary of Isola Group, SARL, based in Chandler, Ariz. The company is a designer, developer and manufacturer of high-performance based materials used in the manufacturing of advanced multi-layer printed circuit boards. Calls to Ted Hull, cfo, and a spokeswoman were not returned.