CSP Technologies to launch $195 million credit facility on Friday

By Sara Rosenberg

New York, Jan. 7 – CSP Technologies North America LLC is scheduled to hold a bank meeting at 10 a.m. ET on Friday to launch a $195 million credit facility, according to a market source.

Barclays is the bookrunner on the deal.

The facility consists of a $25 million revolver and a $170 million first-lien term loan, the source said.

The deal includes a maximum total net leverage covenant.

Proceeds will be used to help fund the acquisition of the company by Wendel Group for around $360 million.

Other funds for the transaction will come from about $190 million in equity.

Total leverage is 5.1 times, the source added.

Closing is expected in the first quarter, following customary consultation with the company’s French Workers Council and after receiving necessary approvals from the antitrust authorities.

CSP Technologies is an Auburn, Ala.-based designer and producer of desiccant plastic vials for the diabetes test strip market.

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