TRW Automotive loan details firm up; launch expected later this month

By Sara Rosenberg

New York, Jan. 16 - Details on TRW Automotive's $1.81 billion credit facility are starting to firm up as the retail launch date is fast approaching.

Bank of America has now been added to the syndicate, according to a syndicate source.

JPMorgan, Credit Suisse First Boston, Lehman Brothers and Deutsche Bank were previously reported to be the lead banks on the deal.

The loan will consist of a $500 million revolver, a $410 million term loan A and a $900 million term loan B, the syndicate source said. The various tranches will be denominated in U.S. dollars and euros. "We're not sure what the split is going to be," the syndicate source told Prospect News. "It probably depends on how marketing goes."

Pricing on the tranches is still tentative, since it depends on how well the pre-marketing of the bonds progresses, the syndicate source explained. However, the pro rata is currently expected to be priced with an interest rate of Libor plus 350 basis points and the term loan B is expected to have an interest rate of Libor plus 400 basis points.

Proceeds from the loan will be used to help fund the acquisition of TRW by The Blackstone Group from Northrop Grumman Corp.

TRW is a Livonia, Mich. diversified supplier of automotive systems, modules and components.

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