Bank of America served as administrative agent on a $250 million incremental term loan for Celestica, a designer and manufacturer of supply chain solutions.

The term loan was added through existing accordion feature under the company’s current credit facility, bringing the total borrowings under said facility to $600 million.

Net proceeds from the new term loan were used to repay approximately $245 million of the $339.5 million borrowed under the company’s revolving loan to finance its recently-announced acquisition of Impakt Holdings.

The new loan bears interests at LIBOR plus 2.5%, and in connection therewith, the interest rate on Celestica’s original $350 million term loan increased to LIBOR plus 2.125%. The new loan is subject to quarterly principal repayments of $625,000, and matures together with the original term loan in June 2025.

Merrill Lynch, Citigroup Global Markets, CIBC World Markets, MUFG Bank, RBC Capital Markets, The Bank of Nova Scotia and J.P. Morgan Securities acted as joint lead arrangers and joint bookrunners on the transaction. Merrill Lynch was designated the “left” lead arranger.