ETC Group to launch €972.4 million equivalent U.S. term loan Thursday

By Sara Rosenberg

New York, July 20 – ETC Group (EOS Finco) is scheduled to hold a lender call at 10 a.m. ET on Thursday to launch a €972.4 million equivalent U.S. senior secured seven-year first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas Securities Corp., Bank of Ireland, Credit Agricole, Mizuho, MUFG and Standard Chartered are the arrangers on the deal.

Price talk on the term loan is SOFR plus 575 basis points to 600 bps with a 0.5% floor and an original issue discount of 92, the source said.

The term loan has 101 soft call protection for six months and amortization of 2.5% per annum in years one and two and 5% per annum thereafter.

Expected term loan ratings are B2/B.

Commitments are due at 5 p.m. ET on Aug. 3, the source added.

Proceeds will be used to help fund the acquisition of a majority interest in the company by Cinven from Carlyle and to pay related fees and expenses. Carlyle will hold a significant minority stake in ETC.

ETC is a France-based designer, procurer and distributor of materials, tools and equipment used by the telecom industry.

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