JPMorgan is syndicating $2.05 billion in loans to back the acquisition of AWAS by European private equity group, Terra Firma. Terra Firma is acquiring the aircraft leasing company from Morgan Stanley for $2.5 billion. The company was put up for sale last August and the deal was agreed upon Jan. 30 with a closing date set for no later than June 30.
The deal breaks down into a seven-year, $1.8 billion term loan and a seven-year, $250 million second-lien loan. The deal launched last Thursday. Price talk on the term loan is LIBOR plus 1 3/4% and LIBOR plus 6 1/2% on the second-lien loan, according to one investor. "It's a solid looking deal and helps all parties. AWAS is a company that they [Morgan Stanley] were dying to get rid of; it really didn't fit with what they are trying to do with their business," the investor explained. Calls to AWAS and Terra Firma were not returned.