Deutsche Bank and UBS Warburg filled out the $500 million "B" loan for Amphenol less than a week after launch despite some grumblings from investors that the deal would need higher pricing and more than stock-security to sell the credit. The seven-year term loan is priced at LIBOR plus 21/2%. "People did raise [the security] as an issue, [but] people got over it," said a banker familiar with the deal. He said a chunk of buysiders did shy away from the deal, but there was still a good amount that invested.
The banker noted the added springing lien, which triggers if the ratings fall to BB-/Ba3, would kick in essentially all of the assets of the company (LMW, 4/14). The springing lien suits the BB+/Ba2-rated company's needs, he said, explaining that Amphenol wants to gain investment-grade status to receive better rates on company transactions.
The $750 million refinancing deal also includes a five-year, $125 million revolver and a $125 million "A" piece priced at LIBOR plus 2%. Kohlberg Kravis Roberts & Co. owns about half of the Wallingford, Conn.-based cable and communications products company. Edward Jepson, executive v.p. and cfo of Amphenol, did not return calls, while Deutsche Bank and UBS officials declined to comment.