WP CPP to launch first-lien add-ons, new second-lien loan on Thursday

By Sara Rosenberg

New York, Oct. 15 - WP CPP Holdings LLC is scheduled to hold a bank meeting at 2:30 p.m. ET in New York on Thursday to launch $150 million of add-on first-lien bank debt and a $240 million 71/2-year second-lien term loan, according to a market source.

UBS Securities LLC is the left lead on the deal.

The add-on debt includes a $25 million add-on to the existing $100 million revolver due 2017, bringing the new total to $125 million, and a $125 million add-on to the existing $412 million first-lien term loan due 2019, bringing the new total to $537 million, the source said.

The company does currently have a $185 million second-lien term loan, but the tranche will be completely refinanced with this transaction and paid out at 103.

Remaining funds from the amendment and upsize of the first-lien tranches and the new second-lien loan will be used to fund a dividend.

Included in the first-lien term loan is a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source added.

WP CPP is a Pomona, Calif.-based manufacturer of highly-engineered components and sub-assemblies for the commercial aerospace and defense markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.