Landmark Aviation firms spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 19 - Landmark Aviation set pricing on its $260 million seven-year first-lien term loan B (B2/B-) at Libor plus 450 basis points, the wide end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, pricing on the $130 million eight-year second-lien term loan (Caa2/CCC) came at Libor plus 825 bps, the high side of the Libor plus 800 bps to 825 bps guidance, and the original issue discount firmed at 981/2, the midpoint of the 98 to 99 talk, the source said.

The first-lien term loan's original issue discount of 99 was left unchanged.

As before, both term loans have a 1.25% Libor floor.

The first-lien term loan still has 101 soft call protection for one year, and the second-lien loan still has hard call protection of 102 in year one and 101 in year two.

The $465 million credit facility also includes a $75 million five-year revolver (B2/B-).

Morgan Stanley & Co. LLC, RBC Capital Markets and Barclays are the joint lead arrangers on the deal.

Proceeds will be used to fund Carlyle Group LP's buyout of Landmark Aviation.

The co-borrowers are LM U.S. Member LLC and LM U.S. Acquisition Inc.

Landmark Aviation is a Tempe, Ariz.-based provider of aftermarket services to the business aviation industry.

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