WestJet launches $1.96 billion term loan at Libor plus 300-325 bps

By Sara Rosenberg

New York, July 29 – WestJet Airlines Ltd. launched on Monday its $1,955,000,000 seven-year first-lien term loan with price talk of Libor plus 300 basis points to 325 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s $2,305,000,000 of credit facilities (Ba2/BB-/BB+) also include a $350 million revolver.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are the lead arrangers on the deal.

Commitments are due at noon ET on Aug. 8, the source added.

Proceeds will be used to help fund the buyout of the company by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.

Other funds for the acquisition will come from equity.

Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.

WestJet is a Calgary, Alta.-based airline company.

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