ITP Aero to launch $200 million add-on term loan B on Tuesday

By Sara Rosenberg

New York, Oct. 23 – ITP Aero (Propulsion (BC) Newco LLC) is scheduled to hold a lender call at 10:30 a.m. ET on Tuesday to launch a fungible $200 million add-on term loan B due Sept. 14, 2029, according to a market source.

RBC Capital Markets, UBS Investment Bank and Santander are the arrangers on the deal.

Proceeds will be used to fund the recently announced acquisition of BP Aerospace, an Irving, Tex.-based provider of aircraft engine aftermarket services, and to provide cash on hand for future acquisition opportunities.

Closing on the acquisition is expected by year-end, subject to regulatory approvals.

Pricing on the company’s existing term loan B is SOFR plus 375 basis points with a 0.5% floor. The loan has a step-up to SOFR plus 400 bps at more than 0.5x inside closing first-lien net leverage of 3.5x at the time of the company’s buyout by Bain Capital Private Equity from Rolls-Royce.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

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