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Ontic lifts first-lien loan to $480 million, firms second-lien spread
By Sara Rosenberg
New York, Oct. 23 – Ontic (Bleriot US Bidco Inc.) upsized its seven-year covenant-lite first-lien term loan B (B2/B-) to $480 million from $475 million, according to a market source.
Also, the company set pricing on its $175 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 850 basis points, the high end of the Libor plus 825 bps to 850 bps talk, the source said.
The second-lien term loan still has a 0% Libor floor, an original issue discount of 98 and hard call protection of 102 in year one and 101 in year two.
Pricing on the first-lien term loan B and on a $75 million covenant-lite delayed-draw first-lien term loan B (B2/B-) was unchanged at Libor plus 475 bps with a 0% Libor floor and a discount of 99.
The first-lien term loan still has 101 soft call protection for six months.
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, and the delayed-draw ticking fee is half the spread for days 31 to 90 and the full spread thereafter.
The company’s now $815 million of credit facilities, up from $810 million, 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.
Allocations are expected on Thursday, 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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