Beechcraft ups term B to $425 million, flexes to Libor plus 450 bps

By Sara Rosenberg

New York, Feb. 13 - Beechcraft Holdings LLC (Hawker Beechcraft Inc.) upsized its seven-year term loan B (B1/BB-) to $425 million from $375 million and lowered pricing to Libor plus 450 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

In addition, the original issue discount on the term loan B was tightened to 99 from 981/2, the source said.

The B loan still has a 1.25% Libor floor and 101 soft call protection for one year.

Recommitments are due at 3 p.m. ET on Thursday.

With the term loan B upsizing, the company's downsized its five-year ABL revolver to $175 million from $225 million, the source continued.

According to court documents, interest on the revolver will depend on available credit, with pricing ranging from Libor plus 175 bps to 225 bps.

J.P. Morgan Securities LLC is the lead bank on the $600 million senior secured exit financing credit facility.

Proceeds will be used to pay all outstanding amounts under the company's $400 million debtor-in-possession facility, make specified settlement and cure payments, and for working capital and general corporate purposes.

The amounts raised through the term loan B upsizing will be used to add cash to the balance sheet, the source added.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft. The company filed for bankruptcy on May 3, 2012 under Chapter 11 case number 12-11873.

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