Wencor discloses price talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 29 – Wencor (Jazz Acquisition Inc.) released price talk on its $405 million seven-year covenant-lite first-lien term loan (B2/B-) and $125 million eight-year covenant-lite second-lien term loan (Caa2/CCC) in connection with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 98.5, 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.

The company’s $605 million of credit facilities also include a $75 million revolver (B2/B-).

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal.

Commitments are due at 5 p.m. ET on June 12.

Proceeds will be used to refinance existing debt.

Wencor is a Peachtree City, Ga.-based aftermarket solutions provider for commercial aerospace.

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