TTM Announces Completion of Its Debt Refinancing
September 28 2017 - 4:05PM
TTM Technologies, Inc. (NASDAQ:TTMI) ("TTM") announced today the
completion of its previously announced debt refinancing, which
included the closing of its private placement (the “Offering”) of
$375 million in aggregate principal amount of its 5.625% senior
notes due 2025 (the “Notes”) and the syndication of a $350 million
senior secured term loan that matures in September 2024 (the “New
Term Loan Facility”).
TTM used the proceeds of the Offering, together
with borrowings from its New Term Loan Facility, to refinance the
full amount of indebtedness outstanding under TTM’s previous term
loan facility and repay a portion of the amounts outstanding under
TTM’s U.S. senior secured revolving credit facility, as well as to
pay related fees and expenses.
Under the New Term Loan Facility, TTM successfully
priced $350 million of new U.S. dollar-denominated Term B Loans at
an interest rate of LIBOR + 2.50%, which priced 175 basis points
lower than its previous Term B Loans issued in September 2016. The
new Term B Loans were issued with a 0.5% original issue discount.
The capital structure resulting from the Offering and New Term Loan
Facility is expected to result in estimated annual cash interest
savings of approximately $3.5 million, based on today’s LIBOR rate,
as well as more flexibility as a result of more favorable terms for
use of cash. Annual non-cash interest expense will increase
approximately $1.1 million. In conjunction with this transaction,
TTM will record, in the third quarter, non-cash expense of $0.8
million for the write off of debt issuance costs associated with
the Term B Loans issued in September 2016.
The Notes and related guarantees were offered and
sold in a private placement, solely to persons believed to be
qualified institutional buyers in reliance on Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), or
outside the United States to non-U.S. persons in compliance with
Regulation S under the Securities Act. The Notes and related
guarantees have not been and will not be registered under the
Securities Act or the securities laws of any other jurisdiction and
may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of
the Securities Act and applicable state securities or blue sky laws
and foreign security laws.
This press release shall not constitute an offer to
sell or the solicitation of an offer to buy any Notes, nor shall
there be any sales of the Notes in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
Forward-looking Statements This
release contains forward-looking statements that relate
to future events. TTM cautions you that such statements are simply
predictions and actual events or results may differ materially.
These statements reflect TTM’s current expectations, and TTM does
not undertake to update or revise these forward
looking statements, even if experience or future changes make
it clear that any projected results expressed or implied in this or
other TTM statements will not be realized. Further, these
statements involve risks and uncertainties, many of which are
beyond TTM’s control, which could cause actual results to differ
materially from the forward-looking statements.
Statements related to, among other things, the Notes, the New Term
Loan Facility, and potential changes in market conditions
constitute forward-looking statements. For a description of
additional factors that may cause TTM’s actual results, performance
or expectations to differ from any forward-looking statements,
please review the information set forth in the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s public reports
filed with the Securities and Exchange Commission.
About TTM 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.
IR ContactSameer DesaiSenior
Director, Corporate Development & Investor
Relationssameer.desai@ttmtech.com714-327-3050
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