Consolidated Precision reveals talk on $439 million of term loans

By Sara Rosenberg

New York, July 19 – Consolidated Precision Products Corp. (WP CPP Holdings LLC) disclosed price talk on its $439 million of incremental senior secured term loans with its lender call on Thursday, according to a market source.

The $273 million incremental covenant-light first-lien term loan B due April 2025 is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5, and the $166 million incremental covenant-light second-lien term loan due April 2026 is talked at Libor plus 775 bps with a 1% Libor floor and a discount of 99, the source said.

Amortization on the incremental first-lien term loan is 1% per annum.

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.

Commitments are due at noon ET on July 30, the source added.

Proceeds will be used to fund the acquisition of Selmet Inc., a manufacturer of complex, titanium castings and machined components for the aerospace and defense industries.

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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