Wesco Aircraft flexes $525 million term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, Feb. 24 - Wesco Aircraft Holdings Inc. reduced pricing on its $525 million seven-year senior secured term loan B (Ba3/BB-) to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

In addition, the original issue discount was modified to 99¾ from 991/2, the source said.

The loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the purchase of Haas Group Inc. for $550 million in cash, subject to certain closing adjustments, from the Jordan Co. LP.

Other funds for the acquisition will come from a $32.9 million draw under the company's existing revolving credit facility and $25 million of cash on hand.

Pro forma for the acquisition, consolidated total leverage is expected to be 4.4 times with about $198 million of available liquidity.

Closing is expected by the end of this quarter, subject to customary conditions.

Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry. Haas is a West Chester, Pa.-based provider of chemical supply chain management solutions to the commercial aerospace, airline, military, energy and other markets.

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