One Sky Flight trims term loan to $405 million, lifts spread to Libor plus 750 bps

By Sara Rosenberg

New York, Dec. 19 – One Sky Flight LLC downsized its senior secured first-lien term loan (B2//B+) to $405 million from $425 million and increased pricing to Libor plus 750 basis points from talk in the range of Libor plus 625 bps to 650 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 97.5 from 98, and the call protection was changed to a hard call of 102 in year one and 101 in year two from a soft call of 101 for one year, the source said.

Furthermore, the maturity of the term loan was shortened to five years from seven years.

The term loan still has a 1% Libor floor.

Amortization on the term loan is 5% in year one and 10% per annum thereafter.

Financial covenants include a first-lien net leverage ratio that will be tested quarterly and a minimum liquidity covenant that will be tested quarterly, the source continued.

Jefferies LLC, Guggenheim and CIBC are the lead arrangers on the deal.

The term loan priced and allocated on Thursday, the source added.

Proceeds will be used to refinance existing debt, purchase aircraft currently leased and fund cash to the balance sheet to support future growth.

One Sky is a full-service private aviation company.

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