WP CPP cuts $240 million second-lien loan spread to Libor plus 775 bps

By Sara Rosenberg

New York, Oct. 23 - WP CPP Holdings LLC reduced pricing on its $240 million 71/2-year second-lien term loan (Caa1/CCC+) to Libor plus 775 basis points from Libor plus 800 bps, according to a market source.

Also, the original issue discount on the second-lien term loan was changed to 99½ from 99 and the discount on the $125 million add-on first-lien term loan (B1/B) due 2019 was moved to 99¾ from 991/2, the source said.

As before, the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, and the add-on first-lien term loan is priced at Libor plus 375 bps with a 1% Libor floor and has 101 soft call protection for six months.

The spread and floor on the add-on first-lien term loan matches current first-lien term loan pricing.

The company is also getting a $25 million add-on revolver (B1/B) due 2017.

With the add-ons, the first-lien term loan will total $537 million and the revolver will total $125 million.

Recommitments were due at 5 p.m. ET on Wednesday, compared to an original deadline that was set for this coming Friday, the source added.

UBS Securities LLC is the lead bank on the deal.

Proceeds will be used to repay in full an existing $185 million second-lien term loan at a premium of 103 and to fund a dividend.

WP CPP is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies for the commercial aerospace and defense markets.

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