TRW Automotive's $1.81 billion acquisition credit shifted into overdrive last week after the company's concurrent $1.58 billion bond deal hit the market. The $900 million "B" loan had oversubscribed to the $1.5 billion range as LMW went to press, according to a banker familiar with the deal. The "B" had been half filled before the bonds were priced (LMW, 2/10). He noted that the bonds drove the performance of the credit. Additionally, the $910 million pro rata increased its commitment levels with 20 investors bidding in, compared with fewer than 10 investors the previous week, he stated. The banker was unable to comment regarding possible structural or pricing changes to the deal.
The eight-year "B" is priced at LIBOR plus 4%, while the six-year, $410 million "A" term loan has a spread of 31/ 2% over LIBOR. The six-year, $500 million revolver is also priced at LIBOR plus 31/ 2%, with a 50 basis point commitment fee. The credit was launched to both European and U.S. investors.
J.P. Morgan, Credit Suisse First Boston, Lehman Brothers, Deutsche Bank and Bank of America are leading the deal, which backs The Blackstone Group's $4.7 billion majority stake buyout of Northrop Grumman's TRW Automotive business. Deutsche Bank and B of A officials declined to comment, while J.P. Morgan, CSFB and Lehman bankers did not return calls by press time. TRW Automotive and Blackstone officials could not be reached by press time.