Vertex Aerospace shifts funds between first- and second-lien loans

By Sara Rosenberg

New York, Nov. 10 – Vertex Aerospace upsized its seven-year first-lien term loan to $925 million from $890 million and downsized its eight-year privately placed second-lien term loan to $185 million from $220 million, according to a market source.

In addition, one of two leverage-based pricing step-downs was removed from the first-lien term loan, leaving one 25 bps step-down based on leverage, and the original issue discount was tightened to 99.5 from 99, the source said.

Also, changes were made to documentation, including revising MFN to 50 bps for 12 months from 75 bps for six months.

The first-lien term loan is still priced at Libor plus 400 basis points with a 0.75% Libor floor and has 101 soft call protection for six months.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, MUFG and Citizens Bank are the leads on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Project Sky, a provider of training and sustainment services and products to the defense and commercial aerospace industries, from Raytheon Technologies Corp.

In connection with this transaction, the company plans to upsize its existing revolving credit facility to $100 million from $75 million.

American Industrial Partners is the sponsor.

Vertex Aerospace is a Madison, Miss.-based defense aerospace company.

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