Consolidated Precision sets talk on $875 million credit facilities

By Sara Rosenberg

New York, April 12 – Consolidated Precision Products Corp. (WP CPP Holdings LLC) announced price talk on its $875 million of senior secured credit facilities with its lender presentation on Thursday, according to a market source.

The $125 million five-year revolver (B) is talked at Libor plus 375 basis points with a 0% Libor floor, the $625 million seven-year covenant-light first-lien term loan (B) is talked at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5, and the $125 million eight-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 775 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are the joint lead arrangers and bookrunners on the deal.

Commitments are due on April 24, the source added.

Proceeds will be used to refinance existing debt.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

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