Celestica, a design, manufacturing, hardware platform and supply chain solutions company, has amended its existing senior secured credit agreement, with an upsizing of the total facility to $1.5 billion to support continuing growth.
The amended facility consists of the following key changes to the existing facility:
- Revolving loan facility upsized to $750 million_x000D_
- Increases the revolving loan commitments from $600 million to $750 million.
- Maturity date extended from March 2025 to June 2029.
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- New term A and term B loans with a total original principal amount of $750 million_x000D_
- Replaces (and terminates) the two existing term loans (aggregate of $604 million outstanding) with:_x000D_
- A new term A loan in the original principal amount of $250 million, with a maturity date in June 2029
- A new term B loan in the original principal amount of $500 million, with a maturity date in June 2031.
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- The new term A loan currently bears interest at adjusted term SOFR plus 1.75%, and is subject to quarterly principal repayments of $3.125 million.
- The new term B loan currently bears interest at term SOFR plus 1.75%, and is subject to quarterly principal repayments of $1.250 million.
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- Replaces (and terminates) the two existing term loans (aggregate of $604 million outstanding) with:_x000D_
The term loans were drawn in full at closing. A substantial portion of the proceeds were used to repay all amounts outstanding under the terminated term loan facilities and a portion of the balance outstanding under the existing revolver, as well as certain fees and expenses relating to the amended facility. Remaining term loan proceeds, as well as amounts available under the revolver, are permitted to be used for general corporate activities.
The amended facility was provided by a syndicate of lenders with Bank of America acting as administrative agent. BofA Securities acted as left lead arranger and left lead bookrunner. Canadian Imperial Bank of Commerce and CIBC World Markets, MUFG Bank, Canada Branch and Crédit Agricole Corporate and Investment Bank (Canada Branch) acted as joint lead arrangers, joint bookrunners and co-syndication agents.
