Firth Rixson reveals $680 million term loan price talk with launch

By Sara Rosenberg

New York, Nov. 9 - Firth Rixson Ltd. came out with price talk on the U.S. dollar and sterling tranches under its $680 million first-lien term loan due June 2017 in connection with its Friday conference call, according to a market source.

The U.S. tranche is talked at Libor plus 475 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 99, and the sterling tranche, which could be up to £150 million, is talked at Libor plus 500 bps to 525 bps with a 1.25% floor and a discount of 99, the source said.

The entire term loan has 101 soft call protection for one year.

The company's $800 million credit facility (Ba3/B+) also provides for a $120 million revolver due March 2017.

Covenants include net leverage and interest coverage ratios.

Commitments are due on Nov. 20, the source added.

Deutsche Bank Securities Inc., Barclays, HSBC, Lloyds Securities LLC and GE Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt.

Firth Rixson is a Sheffield, England-based provider of seamless rolled rings, closed die forgings, open die forgings, extruded forgings and specialty metals primarily to the aerospace market.

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