Monocle plans $150 million asset-based revolver for AerSale purchase

By Sara Rosenberg

New York, Dec. 9 – Monocle Acquisition Corp. has received a commitment for a $150 million four-year senior secured asset-based revolving credit facility to help fund its acquisition of AerSale Corp., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Wells Fargo Bank and PNC Bank are the joint lead arrangers on the revolver.

As committed, initial pricing on the revolver is Libor plus 300 basis points. The spread can range from Libor plus 200 bps to 300 bps based on excess availability.

Under the agreement, AerSale is being bought from Leonard Green & Partners, Florida Growth Fund LLC and the company’s two founders for $250 million in cash and $150 million in newly issued common equity at closing, subject to adjustment to the mix of consideration under certain circumstances.

Other funds for the transaction will come from Monocle’s cash in trust.

The company may also seek to raise additional capital through junior debt or other sources of debt financing.

Following the transaction, Leonard Green & Partners, Florida Growth Fund LLC and members of AerSale’s management team will continue to own about 42% of the outstanding shares of the combined company. The remaining outstanding shares of the combined company will be held by public stockholders, including the founders of Monocle.

Monocle is a New York-based public investment vehicle formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or similar business combination with one or more businesses with a focus in the aerospace and defense sectors.

AerSale is a Coral Gables, Fla.-based provider of aviation aftermarket products and services.

The combined company will be named AerSale Corp.

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