TRW Automotive to launch $1.9 billion credit facility

By Sara Rosenberg

New York, Nov. 12 - TRW Automotive Holdings Corp. is expected to come to market with a proposed $1.9 billion credit facility soon with hopes of closing the deal by the end of the year.

JPMorgan is the left lead bank on the deal, with Bank of America and Goldman Sachs acting as joint bookrunners, a company spokesman told Prospect News Friday.

The facility consists of an $850 million revolving credit facility, a $250 million term loan A and an $800 million term loan B.

Proceeds will be used to refinance $1.7 billion of the existing $2 billion credit facility, according to a company news release.

The new $300 million six-year term loan E will be left in place. The term loan E closed on Nov. 2 and carries an interest rate of Libor plus 175 basis points with the ability to step down to Libor plus 150 basis points based on ratings.

"The primary reason for doing this was really to increase the financial flexibility for the company," the TRW spokesman said. "We felt that the timing was good and the markets were receptive so [this] just gets us more competitive on the credit facilities."

The increase in availability under the proposed deal will result from the expected increase in the amount of the revolver.

TRW is a Livonia, Mich.-based automotive supplier.

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