Wesco Aircraft launches $525 million term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 12 - Wesco Aircraft Holdings Inc. launched on Wednesday its $525 million seven-year senior secured term loan B with price talk of Libor plus 275 basis points with a 0.75% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the purchase of Haas Group Inc. for $550 million in cash, subject to certain closing adjustments, from the Jordan Co. LP.

Other funds for the acquisition will come from a $32.9 million draw under the company's existing revolving credit facility and $25 million of cash on hand.

With the transaction, the company is looking to amend its existing credit facility to allow for the new term loan B, increase the consolidated total leverage ratio levels and increase negative covenant baskets, according to an 8-K filed with the Securities and Exchange Commission.

Pro forma for the acquisition, consolidated total leverage is expected to be 4.4 times with about $198 million of available liquidity.

Closing is expected by the end of this quarter, subject to customary conditions.

Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry. Haas is a West Chester, Pa.-based provider of chemical supply chain management solutions to the commercial aerospace, airline, military, energy and other markets.

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