Chromalloy launches $900 million term loan B at SOFR plus 400 bps

By Sara Rosenberg

New York, March 12 – Chromalloy Corp. launched on Tuesday its $900 million seven-year term loan B with price talk of SOFR plus 400 basis points with a 0% 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.

Expected term loan ratings are B2/B.

RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, BMO Capital Markets, Mizuho, PSP, Citizens and MUFG are the arrangers on the deal.

Commitments are due at noon ET on March 21, the source added.

Proceeds will be used to refinance the company’s existing term loan, which was provided by direct lenders as part of the acquisition of the business by Veritas Capital in November 2022.

Chromalloy is a Palm Beach Gardens, Fla.-based provider of proprietary engine solutions, primarily for the commercial aerospace, energy and military end markets.

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