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TTM Technologies Announces Increase of ABL Facility to $200MM

September 28, 2016, 07:09 AM
Filed Under: Manufacturing

TTM Technologies, Inc. announced that it has successfully priced $775 million of new U.S. dollar-denominated Term B Loans at an interest rate of LIBOR + 4.25%, which priced 75 basis points lower than its previous Term B Loans issued in May 2015.  In connection with this transaction, TTM settled $841 million of the previously outstanding U.S. dollar-denominated Term B Loans, thereby paying down approximately $66 million of its previously outstanding Term B Loans.  The new financing is expected to generate annual interest savings of approximately $19.5 million. This consists of reduced cash interest payments of $10.0 million and reduced non-cash interest expense of $9.5 million. The new Term B Loans have the same remaining tenor as the previous Term B Loans and mature on May 31, 2021. In conjunction with this transaction, TTM will record, in the fourth quarter, non-cash expense of $47.8 million for the write off of the original issuance discount of $25.4 million and debt issuance costs of $22.4 million associated with the Term B Loans originally issued in May 2015.

In addition, the Company has increased the availability of its revolving U.S. asset-based Loan from $150 million to $200 million, decreased the interest rate 25 basis points and made other minor amendments to the loan agreement.  The Company’s borrowing under its U.S. Asset Based Loan remains at $80 million.  

TTM Technologies, Inc. is a major global printed circuit board manufacturer, focusing on quick-turn and technologically advanced PCBs, backplane assemblies and electro-mechanical solutions. TTM stands for time-to-market, representing how TTM's time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market.

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