Primus International oversubscribes credit facility amendment and extension after pricing flex

By Sara Rosenberg

New York, March 22 - Primus International Inc.'s credit facility amendment and extension filled out ahead of Tuesday's signature deadline after revisions were made to pricing last week, according to a market source.

Under the proposal, the company is looking to push out the maturity on its $25 million revolver and roughly $160 million term loan to June 2014.

Pricing on the extended revolver will remain at Libor plus 400 basis points with no Libor floor (where it was raised to when the company did a previous amendment), and pricing on the extended term loan will be Libor plus 450 bps with a 1% Libor floor, the source said.

Initially, the company was asking lenders to extend the term loan at pricing of Libor plus 400 bps with no floor, but a flex had to be made in order to get the deal done.

Pricing on the term loan prior to the extension is Libor plus 250 bps.

Also, as part of the recent changes, the extended term loan saw the addition of 101 soft call protection for one year and it moved from being covenant-light to requiring that a total leverage covenant be met.

The total leverage requirement, which was already part of the revolver, is set at 4.3 times currently, stepping down to 4.0 times next year, and then dropping by 0.25 each quarter until it reaches 3.0 times.

Lenders are being offered a 10 bps consent fee.

Primus is a Bellevue, Wash.-based Tier 2 supplier of highly engineered metallic and composite parts, kits and assemblies to the aerospace industry.

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