A bank meeting held last Wednesday launched syndication of ARINC's $200 million credit facility. Wachovia Securities is leading the five-year, $75 million revolver and seven-year, $175 million term loan. The facility is replacing a Bank of America-led $135 million facility, noted Keith Welsh, ARINC's assistant treasurer. Welsh said the company chose Wachovia because the bank responded with better terms and more aggressive pricing compared to other bids received. Welsh declined to provide pricing details.
The new facility is being used for working capital and to repay existing debt. Part of the facility will also be used to fund the company's pension plan, which has a shortfall, Welsh added. ARINC is a provider of transportation communications and systems engineering solutions for the aviation, airports, defense, government and transportation industries. Calls to Wachovia bankers were not returned.