Vertex Aerospace preps Oct. 27 launch of $890M term loan

Vertex Aerospace LLC plans to launch to market an $890 million, seven-year first-lien term loan that is part of the financing package supporting the company's acquisition of assets from Raytheon Technologies, according to sources. A lender presentation is scheduled for 10 a.m. ET on Oct. 27.

RBC Capital Markets is leading the deal and Morgan Stanley, Credit Suisse, MUFG, and Citizens are joint lead arrangers.

In addition to the first-lien term loan, financing for the issuer is to include a privately placed $220 million, eight-year second-lien term loan and an asset-based revolver that is being upsized to $100 million, from $75 million.

Vertex announced on Sept. 10 that it was acquiring Raytheon's Defense Training, Professional Services, Mission Critical Solutions, and Modernization and Sustainment business lines.

The company is an existing issuer and was last in the market in March with a repricing and extension of its $321.75 million covenant-lite first-lien term loan. That transaction lowered the spread on the loan to L+400, from L+475, with a 0% Libor floor, and extended the maturity by two years to June 2027.

Vertex, based in Madison, Miss., provides aftermarket aerospace services for more than 2,400 fixed and rotary wing airframes. Vertex has been a portfolio company of American Industrial Partners since 2018.