Hawker Beechcraft talks $375 million term B at Libor plus 475-500 bps

By Sara Rosenberg

New York, Jan. 25 - Hawker Beechcraft Inc. (Beechcraft Holdings LLC) is talking its $375 million seven-year term loan B at Libor plus 475 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

The B loan has 101 soft call protection for one year, the source said.

The company's $600 million senior secured exit financing credit facility also includes a $225 million five-year ABL revolver.

According to court documents, interest on the revolver will depend on available credit, with pricing ranging from Libor plus 175 bps to 225 bps.

J.P. Morgan Securities LLC is the lead bank on the deal that launched with a bank meeting on Thursday afternoon.

Commitments are due on Feb. 7, the source added.

Proceeds will be used to pay in full all outstanding amounts under the company's $400 million debtor-in-possession facility, make specified settlement and cure payments, and for working capital and general corporate purposes.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft. The company filed for bankruptcy on May 3, 2012 under Chapter 11 case number 12-11873.

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