Wencor finalizes first- and second-lien term loan pricing

By Sara Rosenberg

New York, June 13 – Wencor (Jazz Acquisition Inc.) set pricing on its $405 million seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and added a step-down to Libor plus 400 bps at first-lien net leverage of 4.4x, according to a market source.

Also, pricing on the company’s $125 million eight-year covenant-lite second-lien term loan (Caa2/CCC) finalized at Libor plus 800 bps, the low end of the Libor plus 800 bps to 825 bps talk, the source said.

The first-lien term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 98.5 and 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, Deutsche Bank Securities Inc., ING, Goldman Sachs Bank USA, KKR Capital Markets and Jefferies LLC are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

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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