| NEW YORK
NEW YORK Feb 11 Wesco Aircraft Holdings Inc
, a distributor of supply chain management services to
the global aerospace industry, revealed details on plans to tap
the leveraged loan markets to back its acquisition of Haas Group
Inc, sources told Thomson Reuters LPC.
Wesco Aircraft Holdings is planning a $525 million term loan
B. A bank meeting is scheduled for 10 a.m. on Wednesday in New
Bank of America Merrill Lynch is lead left. Barclays, Morgan
Stanley and RBC are to the right. The new $525 million,
seven-year term loan B is expected to be covenant-lite.
West Chester, Pennsylvania-based Haas is a global provider
of chemical supply chain management (CSCM) services to
commercial aerospace, airline, military, energy and other
At September 30, 2013, Wesco had a $200 million revolving
line of credit and $568 million outstanding on its term loan A,
both maturing on December 7, 2017.
The existing term loan A and revolver are being amended to
stay in place, and to allow for the new $525 million term loan
B, sources added.
The borrower on the credit will be Wesco Aircraft Hardware
On January 30, Wesco announced an agreement to acquire Haas
for $550 million in cash from certain investment funds
affiliated with The Jordan Company LP.
The company on Tuesday declined to comment further beyond
that announcement and its February 5 quarterly earnings
Proceeds of the new $525 million TLB, along with cash and
drawings under the company's existing $200 million revolver,
will be used to fund the acquisition, repay outstanding Haas
debt, and pay fees and expenses, Wesco said in a company filing.
Moody's Investors Service placed Wesco Aircraft Hardware
Corp's Ba3 Corporate Family Rating under review for downgrade
following the acquisition agreement.
S&P has a BB- corporate credit rating on Wesco Aircraft
Holdings Inc. The company was placed on CreditWatch with
negative implications due to the debt-financed acquisition.