Emerald EMS completes $265M term loan for buyout; terms

Accounts have received allocations of the $265 million first-lien term loan backing the buyout of Emerald EMS by Crestview Partners, according to sources. The term loan, which was upsized by $15 million, priced in line with talk at a spread of 625 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 1% floor and an original issue discount of 98 via lead arrangers UBS and Barclays. The maturity of the term loan was shorted to six-years, from seven years at launch, and the loan will amortize at 2.5% per annum. The facility will be governed by a total net leverage covenant. Financing will also include a $45 million revolving credit facility due 2027. Emerald EMS, based in Salem, N.H., is a high-tech electronics manufacturing services and design firm with end users in the aerospace and defense, industrial controls, medical, semiconductor sectors, and power and infrastructure.

Terms: