LMI Aerospace Inc to Acquire Valent Aerostructures; Provides $300 Million Of New Senior Secured Credit Facilities

Thursday, 6 Dec 2012 07:00am EST 

LMI Aerospace Inc announced that it has agreed to acquire Valent Aerostructures, LLC for approximately $237 million, plus approximately $9.7 million of certain retained obligations. The transaction, unanimously approved by LMI's Board of Directors and is expected to be completed by December 31, 2012. The purchase consideration payable to Valent's equity holders at closing would be approximately $237 million, less retained indebtedness of approximately $12.6 million and would include $15 million of LMI stock. The aggregate consideration of approximately $246.7 million with respect to the transaction, which includes the retained obligations of $9.7 million. LMI has entered into a commitment letter with RBC Capital Markets to provide $300 million of new senior secured credit facilities to finance the Valent acquisition, refinance existing debt and fund working capital requirements. The new senior credit facilities would replace LMI's existing senior credit facility. Advisors to LMI on the transaction are RBC Capital Markets, exclusive financial advisor; Polsinelli Shughart PC, legal advisor; and AeroAdvisory, LLC, strategic deal planning and due diligence advisor. Advisors to Valent are: Wells Fargo Securities, financial advisor and SNR Denton, legal advisor. 

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