Wesco Aircraft refinances with $825 million revolver and term loan

By Marisa Wong

Madison, Wis., Dec. 7 - Wesco Aircraft Holdings, Inc. announced that it has completed a refinancing of its senior secured credit facilities.

The company closed $825 million of senior secured credit facilities, including a $200 million five-year revolving credit facility and a $625 million five-year term loan.

Each credit facility carries an interest rate of Libor plus 175 basis points to Libor plus 250 bps, based on the consolidated total leverage ratio of the company and its subsidiaries. The initial applicable margin is 225 bps.

Proceeds from the new loans will be used to refinance $626 million of existing first-lien indebtedness, to pay fees and expenses related to the new facilities and for general corporate purposes.

"The new credit facilities extend the maturity profile of the company while enhancing liquidity and reducing our total interest expense," said Greg Hann, executive vice President and chief financial officer of Wesco Aircraft, in a press release.

Merrill Lynch, Pierce, Fenner & Smith Inc. and Barclays Bank plc are the joint lead arrangers for the facilities, with Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding, Inc., RBC Capital Markets, KeyBank NA, Sumitomo Mitsui Banking Corp. and Union Bank, NA as joint bookrunners.

Wesco is a Valencia, Calif.-based distributor and provider of supply chain management services to the aerospace industry.

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