Signature Aviation talks $1.8 billion term B at Libor plus 300 bps

By Sara Rosenberg

New York, April 13 – Signature Aviation plc launched on Tuesday its up to $1.8 billion seven-year covenant-lite term loan B with price talk of Libor plus 300 basis points with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

The company’s $2.15 billion of credit facilities (B1) also include a $350 million five-year revolver.

RBC Capital Markets, Santander, Barclays, MUFG and HSBC Securities (USA) Inc. are the leads on the deal.

Commitments are due on April 27.

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, the company disclosed in a presentation.

Signature Aviation is a London-based aviation services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.