Consolidated Precision moves funds between first-, second-lien loans

By Sara Rosenberg

New York, April 25 – Consolidated Precision Products Corp. (WP CPP Holdings LLC) upsized its seven-year covenant-light first-lien term loan to $640 million from $625 million and downsized its eight-year covenant-light second-lien term loan to $110 million from $125 million, according to a market source.

Furthermore, a 25 basis points pricing step-down at 0.5 times inside closing first-lien net leverage was added to the first-lien term loan and the original issue discount was revised to 99.75 from 99.5, the source said.

Pricing on the first-lien term loan remained at Libor plus 375 bps with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

Second-lien term loan pricing was unchanged at Libor plus 775 bps with a 0% Libor floor and a discount of 99.

The second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s $875 million of senior secured credit facilities also include a $125 million five-year revolver priced at Libor plus 375 bps with a 0% Libor floor.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

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