Aeroflex sets Tuesday launch for $560 million credit facility

By Sara Rosenberg

New York, July 9 - Aeroflex Inc. has scheduled a bank meeting for Tuesday at 10 a.m. ET at the Waldorf in New York to launch its proposed $560 million senior secured credit facility (B1), according to a market source.

Previously, the bank meeting was expected to take place on June 28, but it was postponed to post-July 4 business.

Goldman Sachs is the lead bank on the deal.

The facility consists of a $500 million term loan and a $60 million revolver.

The deal now includes a total leverage maintenance test, whereas this covenant was not part of the original agreement.

Proceeds will be used to help fund the buyout of the company by Veritas Capital for $1.1 billion. Stockholders will receive $14.50 per share in cash.

Other financing will come from $370 million of senior subordinated unsecured high-yield securities, according to filings with the Securities and Exchange Commission.

Closing is subject to the approval of Aeroflex's stockholders and other customary conditions. A stockholder meeting to vote on the transaction is set to take place on July 26.

Aeroflex is a Plainview, N.Y., provider of high technology services to the aerospace, defense, cellular and broadband communications markets.

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