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Ontic sets first- and second-lien term loan price talk with launch
By Sara Rosenberg
New York, Oct. 10 – Ontic (Bleriot US Bidco Inc.) released price talk on its first- and second-lien term loan debt in connection with its bank meeting on Thursday, according to a market source.
The $475 million seven-year covenant-lite first-lien term loan B (B2/B-) and $75 million covenant-lite delayed-draw first-lien term loan B (B2/B-) are talked at Libor plus 475 basis points with a 0% Libor floor and an original issue discount of 99, and the $175 million eight-year covenant-lite second-lien term loan (Caa2/CCC) is talked at Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 98, the source said.
The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
Delayed-draw term loan availability is for 12 months post-closing subject to first-lien net leverage being no greater than the ratio at closing.
The delayed-draw ticking fee is half the spread for days 31 to 90 and the full spread onwards.
The company’s $810 million of credit facilities also include an $85 million five-year revolver (B2/B-).
Nomura Securities, Barclays and Macquarie Capital (USA) Inc. are the lead arrangers on the deal.
Commitments are due at noon ET on Oct. 23, the source added.
Proceeds will be used to help fund the buyout of the company by CVC Fund VII from BBA Aviation plc for an enterprise value of $1.365 billion.
Closing is expected during the week of Oct. 28.
Ontic is a provider of high-quality, OEM-licensed parts and MRO services largely for legacy aerospace & defense platforms.
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