UBS and GE Capital Markets have launched syndication of a $300 million facility to back the recapitalization of ILC Industries by majority shareholder Behrman Capital. The company plans to amend and restate existing facilities and issue $100 million of junior debt to redeem an existing second-lien term loan and mezzanine notes. It will also pay a dividend to existing shareholders. The new facility consists of a six-year, $30 million revolver and a six-and-a-half year, $270 million first-lien term loan. Pricing is being talked at LIBOR plus 2 1/2%.
UBS and GE last led a deal for the company in April 2005, when it launched a $302.5 million credit to pay a $156 million dividend to Behrman and refinance existing debt. Due to oversubscription the facility was reworked and closed as a six-year, $30 million revolver and a six-and-a-half year, $195 million first-lien term loan. Pricing on the revolver and first lien was flexed down to LIBOR plus 2 1/2% with a pricing grid that steps pricing down to LIBOR plus 2 1/4% when leverage is 4.75 times or below. Pricing on the second lien was taken down to LIBOR plus 5 3/4% from LIBOR plus 6 1/2% (CIN, 8/26). A Behrman official referred calls to an outside public relations group, which declined comment.
ILC supplies defense electronics, advanced microelectronic components and engineered materials to the defense, homeland security, commercial aerospace and industrial markets.