J.P. Morgan and Credit Suisse First Boston are easing off the gas on the syndication of the $1.15 billion facility for The Blackstone Group's TRW Automotive, which is nearing close. The facility comprises a $350 million "A" loan and $800 million "D" loan. The "A" tranche is priced at LIBOR plus 2% while the "D" is priced at LIBOR plus 21/2%. The "D" loan was originally valued at $940 million and the "A" loan was $210 million, but the values were adjusted during the process. "It seemed to work better for everybody," a source familiar with the deal said. "It's a lower cost-to-capital." In addition, there is a E95 million "D" piece.
As part of the recapitalization, Blackstone is executing an initial public offering of parent company TRW Automotive Holdings Corp.'s stock. Approximately half of the proceeds of the $700 million IPO will be used to refinance debt and the other half will be used by TRW to buy back shares held by Blackstone. After the IPO, Blackstone will remain majority owner of the company. A Blackstone spokesman declined comment.