Wyle launches planned $205 million term loan add-on at Libor plus 500 bps, OID of 98½

By Sara Rosenberg

New York, Aug. 18 - Wyle Inc. launched its $205 million term loan add-on on Wednesday at Libor plus 500 basis points, with step downs tied to leverage, and a 2% Libor floor - which is where the existing term loan is priced, according to a market source.

The add-on is being offered at an original issue discount of 981/2, the source said.

In addition, the company is looking to amend its credit facility to revise the accordion so as to permit the term loan add-on, to increase the revolver size to $35 million from $25 million and reset financial covenants.

Lenders are being offered a 50 bps amendment fee.

Barclays Capital and JPMorgan are the lead banks on the add-on and amendment, with Barclays the left lead.

Commitments toward the add-on and consents for the amendment are due on Aug. 26.

Proceeds from the term loan add-on will be used to help fund the acquisition of CAS Inc. from ITT Corp.

Other funding for the transaction will come from cash on hand and about $20 million of equity from the company's controlling shareholder, Court Square Capital Partners.

Closing of the acquisition is subject to review and approval by regulatory authorities, such as the Federal Trade Commission, and other customary conditions.

Wyle is an El Segundo, Calif.-based provider of high-tech systems engineering, testing and information technology services. CAS is a Huntsville, Ala.-based provider of systems engineering and technical assistance for military applications.

© 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.