Wesco Aircraft talks $600 million loan at Libor plus 525 bps

By Paul A. Harris

Portland, Ore., Oct. 21 – Wesco Aircraft Holdings Inc. talked its $600 million seven-year covenant-lite term loan B (B3/B) with a 525 basis points spread to Libor at 98, according to a market source.

The deal features six months of call protection at 101.

Commitments are due at 5 p.m. ET on Oct. 31.

Deutsche Bank Securities Inc., BofA Securities, Inc., Jefferies LLC, Barclays, BNP Paribas Securities Corp., Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Platinum Equity for $11.05 per share in cash. The transaction is valued at about $1.9 billion.

Upon completion, Wesco will be combined with Platinum Equity portfolio company Pattonair, a U.K.-based provider of supply chain management services for the aerospace and defense industries.

Closing is expected by year-end, subject to Wesco shareholder approval, regulatory clearances and other customary conditions.

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

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