Signature Aviation firms term loan B at $1.69 billion, trims pricing

By Sara Rosenberg

New York, April 22 – Signature Aviation plc set the size of its seven-year covenant-lite term loan B at $1.685 billion, compared to initial talk of up to $1.8 billion, and reduced pricing to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

Furthermore, the original issue discount on the term loan finalized at 99.25, the midpoint of the 99 to 99.5 talk, the source said.

The one leveraged-based pricing step-down, 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

The downsize was driven by the results of the company’s bond tender offer, as some of the bond investors chose to roll their position, and leverage was kept the same, the source added.

The company’s $2.035 billion of credit facilities (B1/B+) 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.

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 $4.727 billion.

Closing is expected in the second quarter, subject to regulatory approvals.

Signature Aviation is a London-based aviation services company.

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