Consolidated Precision sets first-lien pricing at Libor plus 450 bps

By Sara Rosenberg

New York, Dec. 20 - Consolidated Precision Products Corp. (WPP CPP Holdings LLC) updated pricing on its $415 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 450 basis points, according to a market source. Initial talk was Libor plus 450 bps to 475 bps and then it was thought to be firming at Libor plus 475 bps before settling in at this final spread.

The loan still has a 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year.

The company is also getting a $185 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+) that is priced at Libor plus 925 bps with a 1.25% Libor floor and an original issue discount of 98.

The second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Earlier this week, pricing on the second-lien debt was increased from talk of Libor plus 825 bps to 850 bps, the discount widened from 981/2, the maturity was shortened from eight years and the call protection was changed from just 102 in year one and 101 in year two.

The company's $700 million credit facility also provides for a $100 million five-year revolver (B1/B) that has a 50 bps unused fee.

Allocations are expected to go out on Friday morning.

UBS Securities LLC, GE Capital Markets and RBC Capital Markets LLC are the bookrunners on the deal. Goldman Sachs & Co. and ING Financial Markets LLC are the documentation agents.

Proceeds will be used to help fund the acquisition of ESCO Corp.'s Turbine Technologies Group, a manufacturer of superalloy precision investment cast components, and to refinance existing debt.

Closing is expected following satisfaction of regulatory requirements and other customary conditions.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small-to-large function critical products.

© 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.