TTM Technologies priced $500 million of 6.750% senior notes due 2034, with the sale expected to close on September 24. Proceeds, alongside $300 million and $800 million incremental term loans, are intended to fund Epiq Solutions and corporate purposes, while a missed Acquisition deadline would require Redemption at 100%.

Key Highlights

  • TTM Technologies plans to combine the notes proceeds with a $300 million term Loan A and a $800 million term loan B.
  • Failure to complete the Epiq Solutions acquisition by November 15 could trigger redemption at 100% of principal plus accrued and unpaid interest.
  • The notes are senior unsecured obligations offered privately.
  • TTM may use the proceeds for general corporate purposes, including reducing future borrowings under its revolving Credit Facility tied to the proposed purchase of Swiss Technology Group AG.

Financing Structure and Planned Uses

The notes are senior unsecured obligations and are being offered privately. TTM (NASDAQ: TTMI) may also use the money for general corporate purposes, including reducing future borrowings under its revolving credit facility tied to the proposed purchase of Swiss Technology Group AG. Related fees and expenses are also included among the planned uses. The private offering is directed to qualified institutional buyers under Rule 144A or to non-U.S. Persons outside the United States under Regulation S.

Redemption Condition for Epiq Solutions

The notes offering is not conditioned on completion of the Epiq Solutions acquisition, and the acquisition is not conditioned on the notes closing. If the transaction is not completed by November 15, TTM must redeem the notes at 100% of principal plus accrued and unpaid interest from issuance through the redemption date. The deadline may automatically extend to May 15, 2027 in certain circumstances. TTM must also redeem the notes if it informs the Trustee that the acquisition will not occur by the applicable deadline.