Esterline Technologies Europe gets €125 million five-year term loan

By Angela McDaniels

Tacoma, Wash., July 26 - Esterline Technologies Corp. subsidiary Esterline Technologies Europe Ltd. entered into a new €125 million term loan under an amendment made to the parent company's $460 million revolving credit facility on July 20, according to an 8-K filing made with the Securities and Exchange Commission on Tuesday.

Both the term loan and revolver mature on July 20, 2016.

The initial interest rate on both the term loan and revolver is Libor plus 175 basis points, and the commitment fee for the revolver is 30 bps. The margin over Libor can range from 150 bps to 225 bps, and the commitment fee ranges from 30 bps to 40 bps. Both depend on leverage.

Quarterly amortization payments of €15.63 million each are due on the term loan beginning Sept. 30.

The subsidiary was also given access to the revolver. It can borrow up to $75 million in U.S. dollars, Canadian dollars, euros or pounds sterling.

Wells Fargo Bank, NA is the administrative agent. Wells Fargo Securities, LLC, Bank of America Merrill Lynch and BNP Paribas are the joint lead arrangers. Wells Fargo, Bank of America Merrill Lynch, Union Bank, NA and U.S. Bank, NA are the bookrunners. Bank of America, NA and BNP Paribas are the syndication agents. Union Bank and U.S. Bank are the documentation agents.

The proceeds of the new term loan will be used in connection with Esterline's purchase of the Souriau Group.

The bank lenders consented to the acquisition so long as the total purchase price paid does not exceed €510 million.

Bellevue, Wash.-based Esterline makes products and systems for the aerospace and defense, industrial/commercial and medical markets.

The Souriau Group is based in Versailles, France, and manufactures engineered connectors for harsh environments.

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