Wencor Group reveals first- and second-lien term loan price talk

By Sara Rosenberg

New York, June 12 – Wencor Group LLC (Jazz Acquisition Inc.) came out with price talk on its $320 million seven-year first-lien covenant-light term loan and $155 million eight-year second-lien covenant-light term loan with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

In addition to the term loans, the company’s $540 million credit facility includes a $65 million revolver.

Commitments are due on June 23, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Warburg Pincus from Odyssey Investment Partners LLC.

Closing is expected this quarter, subject to customary regulatory approvals.

Wencor is a Springville, Utah-based designer, repair provider and distributor of aftermarket aerospace components.

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