Fairbanks Morse Defense first-lien term loan frees to trade above OID

By Sara Rosenberg

New York, Sept. 2 – Fairbanks Morse Defense (Arcline FM Holding LLC) saw its incremental first-lien term loan make its way into the secondary market on Thursday morning, with levels quoted above its original issue discount.

The company’s fungible $215 million incremental first-lien term loan (B2/B) due June 23, 2028 broke for trading at par bid, par ˝ offered, according to a trader.

Pricing on the incremental first-lien term loan is Libor plus 475 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99.5.

The company is also getting a fungible $47.5 million privately placed incremental second-lien term loan (Caa2/CCC+) due June 23, 2029 priced at Libor plus 825 bps with a 0.75% Libor floor.

During syndication, the incremental first-lien term loan was upsized from $202.5 million and the discount firmed at the tight end of the 99 to 99.5 talk, and the incremental second-lien term loan was upsized from $42.5 million.

© 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.