Albertsons, MB Aerospace, US Farathane accelerate loan commitment deadlines

By Sara Rosenberg

New York, Dec. 9 – In the primary market on Wednesday, Albertsons Cos. LLC, MB Aerospace and US Farathane Corp. all moved up the commitment deadlines on their new loans.

Albertsons ups deadline

Albertsons accelerated the commitment deadline on its $1,145,000,000 seven-year senior secured covenant-light term loan B to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

The loan is talked at Libor plus 450 basis points with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are the joint lead arrangers on the deal, and Credit Suisse Securities (USA) LLC is the administrative agent.

Proceeds will be used to refinance an existing term loan at New Albertson’s Inc.

Closing is expected on Dec. 17.

Albertsons is a Boise, Idaho-based food and drug retailer.

MB Aerospace shutting early

MB Aerospace revised the commitment deadline on its $185 million credit facility to close of business on Thursday from Friday, a source remarked.

The facility consists of a $35 million revolver and a $150 million first-lien term loan talked at Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

SG Americas Securities LLC and ING Capital are leading the deal that will be used to help fund the buyout of the company by Blackstone from Arlington Capital Partners.

Equity will be greater than 50% of total pro forma capitalization.

Closing is expected this year, subject to customary regulatory approvals.

MB Aerospace is a Motherwell, Scotland-based tier I engine component manufacturer and repair business.

US Farathane shortens timeline

Another deal to move up its commitment deadline was US Farathane, with lenders now having until Thursday to place their orders for a fungible $110 million add-on term loan (B2) instead of until Friday, a market source said.

Pricing on the add-on is Libor plus 575 bps with a 1% Libor floor, which matches existing term loan pricing, and the new debt is talked with an original issue discount of 99.25.

Bank of America Merrill Lynch, Barclays and Morgan Stanley Senior Funding Inc. are the leads on the deal.

Proceeds will be used to fund an acquisition and add cash to the balance sheet.

US Farathane is an Auburn Hills, Mich.-based provider of highly engineered plastic injection-molded components.

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