Forming Machining discloses first- and second-lien term loan talk

By Sara Rosenberg

New York, Sept. 20 – Forming Machining Industries Holdings LLC released price talk on its $245 million covenant-light first-lien term loan and $75 million covenant-light second-lien term loan in connection with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $370 million of credit facilities also provide for a $50 million revolver.

Antares Capital and SunTrust Robinson Humphrey Inc. are the joint lead arrangers on the deal.

Commitments are due on Oct. 3, the source added.

Proceeds will be used to fund the acquisition of Atlas Group, a Wichita, Kan.-based manufacturer of flight critical, complex assemblies for a wide range of commercial, business and military aircraft.

Forming Machining, an AE Industrial Partners portfolio company, is a Park City, Kan.-based manufacturer of large, complex assemblies primarily for commercial aircraft.

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