Syndication of the $295 million refinancing of TransDigm Holding Co.'s "B" loan began last week. The debt was incurred in August when Warburg Pincus acquired the company for $1.1 billion from Odyssey Investment Partners.
At close, the "B" loan was priced at LIBOR plus 3% and tied to a leverage-based grid that could push pricing as low as LIBOR plus 23/4% (LMW, 8/19). The Credit Suisse First Boston-led refinancing carries pricing of LIBOR plus 21/4%. "We're getting a lower interest rate, so it's a good thing to do," said Gregory Rufus, TransDigm's v.p. and cfo. He declined further comment.
The "B" loan has a tenor of six-and-a-quarter years. The facility also includes an $80 million revolver, which is not being refinanced. CSFB and Bank of America led the original facility with UBS and GE Capital as agents. Warburg Pincus officials declined comment.