Securitization People and Markets

Credit Suisse First Boston is leading the bank deal to back the acquisition of airplane part maker Transdigm Holding Company by private equity firm Warburg Pincus and senior management for $1.1 billion. Warburg is buying the company from Odyssey Investment Partners, another private equity firm that has owned Transdigm since 1998. The size, pricing and terms of the credit are still to be determined, said a banker familiar with the deal. But it is expected to size up around $400 million and close in the third quarter of this year. CSFB also managed the auction for Richmond Heights, Ohio-based Transdigm. The leveraged buyout agreement is also subject to the closing of a tender offer for Transdigm's 103/8% senior subordinated notes due 2008. A CSFB official declined to comment and a Transdigm official could not be reached by press time.

Scotia Capital last Monday launched syndication of a $150 million credit for global positioning systems (GPS) provider Trimble Navigation Limited. The deal will take out the company's existing debt. The new credit is priced off a grid based on debt-to-cash flow, said a banker familiar with the deal, explaining that the company's current debt-to-cash flow level of two times puts the rate at LIBOR plus 13/4%. The credit includes a $100 million, three-year revolver with a 3/8% incentive on the unused amount. The facility also includes a four-year, $50 million amortizing term loan, the banker noted. A Scotia official declined to comment.

Xerox Corp. is finally in the market with a $1 billion refinancing credit after rumors that the company was staking out a deal circled the market since April (LMW, 4/21). The credit is part of the Stamford, Conn.-based company's $3.1 billion recapitalization strategy, announced last week. Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, Merrill Lynch and UBS Warburg lead the deal that includes a $700 million revolver and a $300 million term loan. A banker familiar with the credit said the deal was out to managing agents as of late last week and should be hitting retail investors in the near future. A Xerox filing said the new deal's pricing would range from LIBOR plus 13/4-3%, depending on leverage. The company's existing deal is priced in the LIBOR plus 4-41/2% range.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.