Advent Said to Revise Structure of Oberthur Buyout Loans

Advent International Corp. is revising the structure of 770 million euros ($1 billion) of loans to back its purchase of the smartcard unit of Francois- Charles Oberthur SA, according to a person with direct knowledge of the deal.

The financing will now include a 410 million-euro, seven- year term loan B, of which $250 million will be offered to investors in the U.S., said the person, who declined to be identified because the terms are private. It will also have a 100 million-euro second lien facility, a 100 million-euro, six- year term loan A, a 100 million-euro acquisition facility and 60 million euros of credit lines.

The $250 million U.S. dollar-denominated piece will pay 5 percentage points more than the London interbank offered rate, according to the person. Libor, the rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

The debt will be sold to investors at 97 cents to 97.5 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Royal Bank of Canada, Barclays Plc and Lloyds Bank are arranging the financing, said the person.

Chuck Dohrenwend, a spokesman for Advent, declined to comment.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Michael Shanahan at mshanahan3@bloomberg.net

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