Aerostructures to hold bank meeting Wednesday for $165 million loan

By Sara Rosenberg

New York, Oct. 3 - The Aerostructures Corp. is scheduled to hold a bank meeting on Wednesday regarding a new $165 million credit facility, according to market sources. Lehman Brothers is the lead bank on the deal.

On a preliminary basis, the loan is said to consist of a $130 million six-year term loan B with an interest rate of Libor pus 375 basis points and a $35 million five-year revolver with an interest rate of Libor plus 325 basis points, market sources said. However, one fund manager told Prospect News that he anticipates a change in the pricing before the actual launch. "There's no way an aircraft deal will get Libor plus 375. That's a little weak," he explained.

The syndicate was not immediately available to confirm this information.

Proceeds from the Nashville, Tenn. supplier of airframe structures new loan will be used to refinance existing debt.

The credit facility is expected to close around Nov. 1.

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