UBS last week launched syndication of a $250 million deal to back the sale of the wire harness business of Viasystems Group to Electrical Components International Holdings Co., an affiliate of Francisco Partners. The financing consists of a six-year, $35 million revolver; a seven-year, $155 million term loan and an eight-year, $60 million second-lien term loan. Price talk for the first lien is LIBOR plus 2 3/4% and LIBOR plus 7% on the second lien. Syndication of the credit launched last Monday.
According to a filing with the Securities and Exchange Commission, Viasystems announced its intention to explore strategic alternatives, including the sale of the business on June 6, 2005. The company entered into an auction process advised by JPMorgan and Rothschild and Francisco Partners "came out on top on the auction," said a Viasystems' spokeswoman.
On March 21, Viasystems entered into an agreement with ECI to sell the business for $320 million. The spokeswoman said the sale is expected to be completed by the end of June. JPMorgan and Rothschild acted as financial advisors and Weil, Gotshal & Manges acted as legal advisors to Viasystems for the transaction. UBS acted as financial advisor to Francisco Partners and O'Melveny & Meyers acted as legal advisors.
According to the filing, the deal will result in the sale of most of Viasystems' operations in Mexico and a small portion of the company's China operations. Tom Ludwig, v.p. at Francisco Partners, declined comment.