| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for DeCrane Aerospace, Inc. > News item |
DeCrane amendment expected to go through as changes are announced
By Sara Rosenberg
New York, May 14 - DeCrane Aerospace Inc.'s proposed amendment is now expected to pass as the agent told lenders on Thursday that some of their suggested changes to the amendment have been put in place, according to an informed source.
Under the new changes, add backs to EBITDA were limited, some pricing on the second-lien term loan will become PIK if there is a default on the first-lien term loan, and the company will have to provide lenders with a monthly reporting package, the source said.
The amendment increases pricing on the first-lien term loan to Libor plus 575 basis points from Libor plus 275 bps and on the second-lien term loan to Libor plus 1,000 bps from Libor plus 700 bps.
If there is a default on the first-lien term loan, pricing on the second-lien term loan will go back to Libor plus 700 bps cash pay, the 300 bps in additional pricing from the amendment will become PIK and there will be another 300 bps PIK added. So, all in all, upon a first-lien default, second-lien pricing would be Libor plus 700 bps cash plus 600 bps PIK, the source remarked.
In return for these things, lenders are loosening the first-lien leverage covenant and the interest coverage covenant under the first-lien credit agreement, and the total leverage covenant under both the first-and second-lien credit agreements.
Originally, the company proposed increasing pricing on both the first- and second-lien term loans by 250 bps, but that was changed earlier in the amendment process to 300 bps.
Lenders are also getting a 75 bps amendment fee on each the first- and second-lien loans.
Credit Suisse is the agent on the deal.
Consents were due at 5 p.m. ET on Thursday.
DeCrane is a Wichita, Kan.-based supplier of interior furnishings, integrated assemblies, subassemblies and component parts to the aerospace industry.
© 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.