TRW Automotive is refinancing and expanding its credit facility after putting a new $300 million "E" loan in place. The company has about $2 billion of bank debt, including the new "E" loan. The "E" will remain in place but the other $1.7 billion of bank debt will be refinanced and turned into a $1.9 billion credit. The new "B" loan will be offered at LIBOR plus 1 3/4%, the same spread as the "E" loan, buysiders noted. The pro rata will be priced at 1 3/8%. The credit will comprise an $850 million revolver, $250 million "A" loan and $800 million "B" loan.
The old credit comprised a $350 million "A" loan, a $298 million "D1" loan and a euro denominated "D2" loan, equivalent to around $61 million, Peter Rapin, TRW Automotive's v.p. of treasury and tax, told LMW during the "E" loan syndication last month (LMW, 10/25). The "A" loan carried a spread of LIBOR plus 1 3/4%, while the "D" tranches were priced at LIBOR plus 2 3/4%, he added. There was also a $500 million undrawn revolver that had drawn pricing of LIBOR plus 2 1/2%. J.P. Morgan is the admin agent on the credit.
The "E" loan was put in place 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. TRW Automotive officials were traveling and could not be reached. Joshua Ashtrof, a principal with Blackstone, did not return calls. A J.P. Morgan spokesman declined comment.