Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers F > Headlines for Fairbanks Morse Defense > News item |
Fairbanks Morse to launch $280 million of term loans on Thursday
By Sara Rosenberg
New York, Dec. 8 – Fairbanks Morse Defense (Arcline FM Holding LLC) is scheduled to hold a bank meeting at 1 p.m. ET on Thursday to launch $280 million of incremental term loans, according to a market source.
Jefferies LLC is the lead arranger on the deal.
The debt consists of a fungible $240 million incremental first-lien term loan due June 23, 2028 talked with an original issue discount of 99 to 99.5 and a fungible $40 million incremental second-lien term loan due June 23, 2029 talked with a discount of 98.5 to 99, the source said.
Pricing on the incremental first-lien term loan is Libor plus 475 basis points with a 0.75% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 825 bps with a 0.75% Libor floor.
Commitments are due at 5 p.m. ET on Dec. 17, the source added.
Proceeds will be used to fund an acquisition and pay down the outstanding balance on an ABL facility.
Pro forma for the transaction, the first-lien term loan will total $985 million and the second-lien term loan will total $252.5 million.
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.
© 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.