DAE Aviation marketing term loan B at 98½ original issue discount

By Sara Rosenberg and Paul A. Harris

New York, Sept. 25 - DAE Aviation Holdings Inc. is bringing back its credit facility and is marketing the $557 million term loan B tranche with an original issue discount of 981/2, according to a market source.

Barclays Capital is the lead bank on the deal, which is being done somewhat informally as no bank meeting will take place to officially launch it.

The $937 million secured credit facility (B2/BB-) also includes a $100 million revolver and a $280 million asset-sale loan.

The deal had been postponed in July because of market conditions.

Before being postponed, the term loan B was being talked at Libor plus 325 bps, with an original issue discount of 981/2, and the $280 million asset-sale loan was being talked at Libor plus 350 bps, with an original issue discount of 981/2.

During the initial syndication round, pricing on the term loan B had been increased from original talk of Libor plus 275 bps, pricing on the asset-sale loan had been increased from original talk of Libor plus 300 bps and the original issue discounts had been added.

The credit facility is being used to back Dubai Aerospace Enterprises Ltd.'s acquisition of Standard Aero Holdings Inc. and Piedmont Hawthorne Holdings Inc. from the Carlyle Group.

DAE Aviation is a provider of maintenance, repair and overhaul services for business and regional jet engines and certain military engines; component and airframe repairs; large business jet completions and modifications; and engineering services.

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