J.P. Morgan has made changes to TRW Automotive's credit as a result of demand during syndication with the pro rata increased at the expense of the institutional piece. The "B" loan was cut by $200 million to $600 million. Meanwhile, the "A" loan was increased by $150 million to $400 million and the revolver was increased by $50 million to $900 million. In addition, pricing on the "B" was cut 25 basis points to LIBOR plus 1 1/2%. The pro rata pricing remains unchanged at LIBOR plus 1 3/8%. Proceeds from the $1.9 billion credit are being used to refinance and expand $1.7 billion of the company's bank debt.
TRW put a new $300 million "E" loan in place last month. Proceeds from the "E" loan were used to buy back a $600 million 8% pay-in-kind note from former owner Northrop Grumman Corp. TRW was acquired by Northrop in 2002 and in early 2003 the automotive group was spun off and acquired by The Blackstone Group. A J.P. Morgan spokesman declined comment. Joshua Ashtrof, a principal with Blackstone, and Peter Rapin, the company's v.p. of treasury and tax, did not return calls.