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Fairbanks Morse to launch $740 million credit facilities on Friday
By Sara Rosenberg
New York, June 2 – Fairbanks Morse Defense is scheduled to hold a bank meeting at 10:30 a.m. ET on Friday to launch $740 million of credit facilities, according to a market source.
Jefferies LLC, BMO Capital Markets and UBS Investment Bank are the lead arrangers on the deal.
The facilities consist of a $75 million five-year revolver, a $510 million seven-year senior secured first-lien term loan and a $155 million eight-year second-lien term loan, the source said.
The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
Proceeds will be used to refinance existing debt and fund a distribution to shareholders.
Fairbanks Morse Defense is a Beloit, Wis.-based provider of propulsion systems, ancillary power, motors and controllers for the U.S. Navy and U.S. Coast Guard, and provider of associated parts and maintenance services.
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