Wesco closes $580 million credit facility with downsized revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – Wesco Aircraft Hardware Corp. closed a five-year $580 million senior secured credit facility, downsized from the $600 million initially planned in September.

The reduction was to the revolving credit facility tranche, which was cut to $180 million from $200 million.

Initial pricing is Libor plus 275 basis points with the spread ranging from 200 bps to 275 bps based on leverage.

Amortization on the term loan A is 5% per annum, with the first amortization payment scheduled for Dec. 31.

Covenants include a net total leverage ratio of 4.5 times initially, with semiannual 25 bps step-downs scheduled to bring the ratio down to 3.5 times for the quarter ending Sept. 30, 2018 and thereafter.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., KeyBank, MUFG, PNC Capital Markets and SMBC are the joint lead arrangers on the deal. Barclays is the administrative agent.

Proceeds will be used to refinance the company’s existing revolver and term loan A due 2017 and to pay related fees and expenses.

Net total pro forma leverage is 4.1 times.

Wesco Aircraft is a Valencia, Calif.-based distributor and provider of supply chain management services to the aerospace industry.

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