MTS Systems signed a commitment letter with JPMorgan Chase Bank with respect to new debt financing to be utilized in connection with funding the company’s proposed acquisition of PCB Group.

MTS Systems has entered into an amended and restated commitment letter with JPMorgan, Wells Fargo Bank, WF Investment Holdings, Wells Fargo Securities, U.S. Bank, HSBC Bank USA and HSBC Securities (USA).

According to the commitment letter, the company will obtain senior secured credit facilities consisting of a $100 million revolving credit facility and a $390 million term loan B facility and $250 million in gross cash proceeds from the issuance of senior unsecured notes. If the company is unable to issue the full amount of the senior notes prior to the closing of the merger, a senior unsecured bridge facility will be provided in an amount equal to $250 million minus any gross cash proceeds received by the company from the issuance of any senior notes or from other debt or equity financing transactions entered into for the purpose of financing the merger or related transaction costs.

JPMorgan and Wells Fargo Securities will act as joint lead arrangers and joint bookrunners for the senior secured facilities, any increase in the amount of the senior secured facilities and the bridge facility.