ITP Aero launches $200 million add-on term loan B at 99 OID

By Sara Rosenberg

New York, Oct. 24 – ITP Aero (Propulsion (BC) Newco LLC) launched on Tuesday its fungible $200 million add-on term loan B due Sept. 14, 2029 with original issue discount talk of 99, according to a market source.

Pricing on the add-on term loan is SOFR plus 375 basis points with a 0.5% floor, in line with the company’s existing term loan. The debt has a step-up to SOFR plus 400 bps at more than 0.5x inside original closing first-lien net leverage of 3.5x.

The add-on term loan has a 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, the source said.

Ratings of B2/B on the term loan are expected to remain unchanged.

RBC Capital Markets, UBS Investment Bank and Santander are the arrangers on the deal.

Commitments are due at noon ET on Oct. 31, the source added.

Proceeds will be used to fund the recently announced acquisition of BP Aerospace, an Irving, Tex.-based provider of aircraft engine aftermarket services, and to provide cash on hand for future acquisition opportunities.

Closing on the acquisition is expected by year-end, subject to regulatory approvals.

Bain Capital is the sponsor.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

© 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.