TTM Technologies, a manufacturer of technology solutions, including mission systems, radio frequency components and radio frequency microwave/microelectronic assemblies and printed circuit boards, closed and syndicated a $350 million senior secured term loan and a U.S. asset-based revolving credit facility with committed borrowing capacity of $150 million.
The new term loan facility, which matures May 2030, amends and restates TTM’s previous senior secured term loan facility that was scheduled to mature in September 2024, under which $356 million of indebtedness was outstanding. TTM used the proceeds from its new term loan facility to refinance $350 million of such outstanding indebtedness and used cash on hand to pay the remaining indebtedness as well as to pay related fees and expenses. The U.S. ABL facility amends and restates TTM’s previous $150 million U.S. asset-based revolving credit facility, which was scheduled to mature in June 2024.
The new term loan facility was priced at an interest rate of term SOFR plus 2.75%. The new term B loans were issued with a 1% original issue discount. Annual cash interest expense is expected to increase by $900,000.
The maximum availability under the U.S. ABL facility is $150 million. The U.S. ABL facility is scheduled to mature in May 2028 and has a borrowing rate of term SOFR plus a margin ranging from 1.35% to 1.6%.
As a result of these transactions, annual non-cash interest expense will increase approximately $300,000 and TTM will record, in Q2/23, a non-cash expense of approximately $1.3 million for the write-off of debt issuance costs.
J.P. Morgan is acting as administrative agent and joint lead arranger for the term loan. Other joint lead arrangers for the new term loan facility include BofA Securities, Barclays Bank, Truist Securities and HSBC Securities. J.P. Morgan is also acting as administrative agent for the ABL facility.