StandardAero to launch $2.76 billion of term loans on Thursday

By Sara Rosenberg

New York, March 13 – StandardAero (Dynasty Acquisition Co.) will hold a lender call at 10 a.m. ET on Thursday to launch $2,762,125,000 of first-lien term loans due August 2028, according to a market source.

UBS and Carlyle are the arrangers on the deal. Credit Suisse is the administrative agent.

Of the total term loan amount, $200 million is a fungible incremental term loan that will be used to repay existing unsecured notes, $1,793,487,500 is a repricing of the term loan B-1 at the U.S. borrower down from SOFR plus 400 bps with a 0% floor, and $768,637,500 is a repricing of the term loan B-2 at the Canadian borrower down from SOFR plus 400 bps with a 0% floor.

The B-1 and B-2 tranches will be sold pro rata and will trade as a strip.

Price talk on the term loan debt is SOFR plus 350 basis points with a 0% floor, an original issue discount of 99.75 to par on rolled positions and a discount of 99.5 on new commitments, the source said.

The term loan debt has 101 soft call protection for six months.

Commitments/consents are due at 5 p.m. ET on Tuesday, the source added.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services for the aerospace and defense industries.

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