UBS Warburg is shopping a $130 million deal for defense, aerospace and industrial products provider ILC Industries, backing the leveraged buyout of the company by Behrman Capital. A banker familiar with the deal said that ILC management will keep an equity stake in the company in order to keep "skin in the game" and the same management in place. The company's ceo, Clifford Lane, is rolling over a $40 million interest in the company, while Behrman is investing $70.4 million, an investor noted. The fully underwritten deal includes a $115 million "B" piece priced at LIBOR plus 4% and a $15 million revolver at LIBOR plus 31/ 2%. UBS launched the credit last Wednesday. A UBS official declined to comment.
One investor noted that ILC's cash flow margins are notably high for the sector. Bohemia, N.Y.-based ILC's Dover subsidiary makes containment and inflatable devices such as blimps, space suits and chemical-biological warfare protection suits. The Data Device Corp. subsidiary makes data conversion products, while the DVC Electronics subsidiary distributes electronics in Europe. Calls to ILC's cfo, Ken Sheedy, were referred to Lane, who did not return calls by press time.