Vought privately places $200 million incremental term loan

By Sara Rosenberg

New York, May 6 - Vought Aircraft Industries Inc. privately placed to a small group of lenders a new $200 million senior secured term loan, according to a market source.

Lehman Brothers, JPMorgan and Goldman Sachs are the lead banks on the deal, with Lehman the administrative agent.

The term loan is priced at Libor plus 400 basis points, with a 3.5% Libor floor, and was sold at a discount of 95, the source said.

Vought's existing term loan is staying priced at Libor plus 250 bps.

The new term loan was done under the accordion feature contained in the existing credit agreement, and no amendment was required to get the incremental debt.

The new term loan is exactly the same as the existing term loan in terms of, among other things, maturity (Dec. 22, 2011), covenants (maximum total leverage, minimum interest coverage, limitation on capital expenditures) and mandatory prepayments. The only real difference is price, the source added.

Proceeds from the new term loan are being used for general corporate purposes.

Vought is a Dallas-based independent supplier of aerostructures.

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