| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for WestJet Airlines Ltd. > News item |
WestJet finalizes $1.96 billion term loan at Libor plus 300 bps
By Sara Rosenberg
New York, Aug. 7 – WestJet Airlines Ltd. firmed pricing on its $1,955,000,000 seven-year first-lien term loan at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and added a step-down to Libor plus 275 bps upon achievement of corporate ratings of either Ba2 from Moody’s Investors Service or BB- from S&P Global Ratings, according to a market source.
In addition, the Libor floor on the term loan was increased to 1% from 0% and the original issue discount was tightened to 99.5 from 99, the source said.
Also, ticking fees on the term loan were outlined as half the margin for days 31 to 60 and the full margin thereafter.
Furthermore, the MFN was changed to 50 bps for life from 75 bps with a six-month sunset, the MFN carve-out clause was removed, and the inside maturity clause was eliminated.
The term loan still has 101 soft call protection for six months.
The company’s $2,305,000,000 of credit facilities (Ba2/BB-/BB+) also include a $350 million revolver.
Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are the lead arrangers on the deal.
Commitments were scheduled to be due at noon ET on Wednesday, the source added.
Proceeds will be used to help fund the buyout of the company by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.
Other funds for the acquisition will come from equity.
Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.
WestJet is a Calgary, Alta.-based airline company.
© 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.