Fairbanks lifts term loan to $210 million, tightens OID to 98

By Sara Rosenberg

New York, Nov. 15 – Fairbanks Morse Defense (Arcline FM Holding LLC) upsized its non-fungible incremental first-lien term loan due June 23, 2028 to $210 million from $185 million and revised the original issue discount to 98 from talk in the range of 97 to 97.5, according to a market source.

Pricing on the incremental term loan remained at SOFR+CSA plus 525 basis points with a 0.75% floor.

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

Jefferies LLC is the sole lead arranger on the deal.

Recommitments were scheduled to be due at 2:30 p.m. ET on Wednesday, 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 for general corporate purposes.

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 U.S. Navy and U.S. Coast Guard.

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