Consolidated Precision Products to launch $157 million credit facility Thursday

By Sara Rosenberg

New York, March 17 - Consolidated Precision Products is scheduled to hold a bank meeting on Thursday to launch its proposed $157 million credit facility, according to a market source.

GE Capital and the Bank of Ireland are the lead banks on the deal.

The facility consists of a $20 million revolver and a $137 million term loan, with both tranches talked at Libor plus 425 basis points to 450 bps, the source said.

The original issue discount on the deal is still to be determined, the source added.

Proceeds will be used to help fund the acquisition of the company by Arlington Capital.

Other financing will come from $59 million of mezzanine debt provided by Audax.

Leverage through the credit facility is 3.39 times and total leverage is 4.85 times. The company has $180 million of sales and $40 million of EBITDA.

Consolidated Precision Products is a manufacturer of highly engineered, complex metal components and assemblies supplying the commercial aerospace, military and defense markets.

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