Firth Rixson lifts term loan size to $705 million, updates pricing

By Sara Rosenberg

New York, Nov. 20 - Firth Rixson Ltd. increased its first-lien term loan due June 2017 to $705 million equivalent from $680 million equivalent and set the split of the U.S. dollar and sterling tranches at about $420 million and up to £180 million, according to a market source.

At launch, the sterling tranche was talked at up to £150 million.

Also, pricing on the U.S. tranche was reduced to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, and pricing on the sterling tranche was reduced to Libor plus 475 bps from talk of Libor plus 500 bps to 525 bps, the source said.

And, the original issue discount on the entire term loan was tightened to 99½ from 99, the source continued.

Both term loan tranches still have a 1.25% Libor floor and 101 soft call protection for one year.

The company's now $825 million credit facility (Ba3/B+), up from $800 million, also provides for a $120 million revolver due March 2017.

Covenants include net leverage and interest coverage ratios.

Commitments were due at the end of the day on Tuesday.

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.

The additional funds raised through the upsizing will be used to reduce a Holdco PIK investment, the source added.

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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