Houlihan Lokey Advises Electrical Components International

Houlihan Lokey is pleased to announce the successful placement of a $1.1 billion credit facility, comprising a priority revolver, unitranche term loan, and delayed draw term loan, for Electrical Components International, Inc. (ECI), a portfolio company of Cerberus Capital Management, LP (Cerberus). Proceeds from the transaction were used to repay existing indebtedness and provide dry powder to fund future M&A opportunities. The transaction closed on May 10, 2024.

Headquartered in St. Louis, Missouri, ECI is a leading, global industrial technology company that designs and manufactures complex electrical distribution systems, control box assemblies, and other critical engineered components for the industrial technology, specialty transportation, appliance, and HVAC end markets. ECI offers a comprehensive suite of high- and low-voltage products that require significant engineering expertise and are mission-critical to its customers’ end products.

Cerberus acquired ECI in 2018 and has since transformed the business through operational improvements and the execution of eight accretive acquisitions, which repositioned the company into less-cyclical, faster-growing, and higher-value end markets, including advanced driver safety, aerospace, high-voltage electrification, medical devices, semiconductors, and warehouse automation.

The company engaged Houlihan Lokey to tap the private credit markets to refinance the impending first lien and second lien maturities in June 2025 and June 2026, respectively.

Houlihan Lokey ran a streamlined process in the private credit markets, which generated multiple financing alternatives, resulting in material oversubscription. The transaction featured favorable terms, including attractive pricing, a 24-month PIK toggle, minimal call protection upon a change of control, and a DDTL with 24 months of availability to fund acquisitions.

Houlihan Lokey served as the exclusive placement agent to ECI and assisted the company in arranging, structuring, and negotiating the financing.