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Signature Aviation to launch $2.15 billion credit facilities Tuesday
By Sara Rosenberg
New York, April 8 – Signature Aviation plc is scheduled to hold a lender call on Tuesday to launch $2.15 billion of credit facilities, according to a market source.
RBC Capital Markets, Santander, Barclays, MUFG and HSBC Securities (USA) Inc. are the leads on the deal.
The facilities consist of a $350 million five-year revolver and a $1.8 billion seven-year covenant-lite term loan B, the source said.
Price talk on the term loan B is Libor plus 350 basis points with a 0.5% Libor floor and an original issue discount of 99.5, the source continued.
The term loan has 101 soft call protection for six months and amortization of 1% per annum.
Commitments are due on April 27, the source added.
Proceeds will be used with $4.157 billion of equity to fund the buyout of the company by Blackstone, Cascade and Global Infrastructure Partners for $5.62 per share in cash, for the entire issued and to be issued share capital of Signature not owned by Cascade and the Bill & Melinda Gates Foundation Trust.
The recommended offer values the entire issued and to be issued share capital of Signature at about $4.727 billion.
Closing is expected in the second quarter, subject to regulatory approvals.
In February, the company entered into an agreement to sell its Engine Repair and Overhaul business to StandardAero for $230 million subject to customary adjustments for net debt, net working capital and transaction expenses.
The sale is expected to deliver about $140 million of net proceeds to Signature. If the sale is completed before the buyout, the term loan B is anticipated to be reduced to around $1.68 billion and if it closes after the buyout, the term loan B is expected to be paid down to around $1.68 billion.
Signature Aviation is a London-based aviation services company.
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