Fairbanks Morse launches $185 million term loan at SOFR plus 525 bps

By Sara Rosenberg

New York, Nov. 8 – Fairbanks Morse Defense (Arcline FM Holding LLC) launched on Wednesday its non-fungible $185 million incremental first-lien term loan due June 23, 2028 with price talk of SOFR+CSA plus 525 basis points with a 0.75% floor and an original issue discount of 97 to 97.5, according to a market source.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

There is no call protection on the incremental term loan.

Jefferies LLC is the sole lead arranger on the deal.

Commitments are due at noon ET on Nov. 15, the source added.

Proceeds will be used to refinance the company’s existing $86.5 million acquisition term loan, to pay down ABL revolving credit facility borrowings and to add cash to the balance sheet.

Fairbanks Morse is a Beloit, Wis.-based provider of mission-critical propulsion and power generation systems, material handling devices, valves, actuators, motors and other hi-rel electrical components for the US Navy and US Coast Guard.

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