LMI Aerospace to launch $325 million credit facility on Jan. 16

By Sara Rosenberg

New York, Jan. 9 - LMI Aerospace Inc. set a bank meeting for Jan. 16 to launch its proposed $325 million senior secured credit facility, according to a market source.

RBC Capital Markets and Wells Fargo Securities LLC are the lead banks on the deal.

The facility consists of a $100 million revolver and a $225 million term loan B, the source said.

Proceeds will be used to back the company's already completed acquisition of Valent Aerostructures LLC, refinance existing debt and provide for working capital needs.

According to filings with the Securities and Exchange Commission, the credit facility was actually entered into on Dec. 28.

The deal that funded includes a $75 million five-year revolver and a $225 million six-year term loan, with both tranches priced at Libor plus 475 basis points. The term loan has a 1.25% Libor floor and 101 soft call protection for one year, and the revolver has a 50 bps unused fee.

LMI Aerospace is a St. Charles, Mo.-based supplier of structural assemblies, kits and components and provider of design engineering services to the aerospace and defense industries. Valent is a Kansas City, Mo.-based provider of structural components, major sub-assemblies and machined parts for airframe manufacturers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.