Wesco ups term loan A to $265 million, cuts B loan to $350 million

By Sara Rosenberg

New York, April 1 - Wesco Aircraft Hardware Corp. increased its five-year term loan A to $265 million from $200 million and decreased its six-year term loan B to $350 million from $415 million, according to a market source.

As was previously reported, pricing on the term loan B firmed at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, with a 1.25% Libor floor.

However, as part of Friday's changes, a step-down was added to the B loan under which pricing can move, after June 30, 2012, to Libor plus 275 bps when leverage is less than 2.5 times.

Also, the original issue discount on the term loan B was tightened to 99¾ from 991/2, the source said.

As before, the B loan provides for 101 soft call protection for one year.

Meanwhile, pricing on the term loan A, as well as on a $150 million five-year revolver is unchanged at Libor plus 300 bps with no Libor floor. The revolver has a 50 bps unused fee.

Recommitments were due from lenders at 5 p.m. ET on Friday, and allocations are expected to go out on Monday.

Bank of America Merrill Lynch and Barclays Capital Inc. are the joint lead arrangers and bookrunners on the $765 million credit facility (Ba3/BB-), with J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., RBC Capital markets LLC and Sumitomo bookrunners as well.

Proceeds will be used to refinance existing debt.

Wesco is a Valencia, Calif.-based integrated inventory management services provider and distributor of hardware and other components to the aerospace industry.

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