Consolidated Precision launches $192 million term loan B at 99.25 OID

By Sara Rosenberg

New York, July 15 – Consolidated Precision Products Corp. (WP CPP Holdings LLC) launched on its call on Monday a fungible $192 million add-on covenant-lite term loan B (B2/B) due April 2025 that is talked with an original issue discount of 99.25, according to a market source.

Pricing on the add-on term loan is Libor plus 375 basis points with a 1% Libor floor, the source said.

Amortization on the add-on term loan is 1% per annum.

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

The company is also getting a $50 million delayed-draw term loan and an $80 million second-lien term loan, which have been placed with Carlyle.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Proceeds will be used to support a recapitalization transaction with Berkshire Partners and Warburg Pincus, the company’s current financial partner, and the acquisition of Allegheny Technologies Inc.’s Cast Products business, a producer of titanium investment castings that are primarily used by aerospace & defense OEMs in the production of commercial jet airframes and engines.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

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