Vertex Aerospace wraps $925M term loan tight to talk; terms

Investors have received allocations of the $925 million first-lien term loan for Vertex Aerospace LLC that is part of the financing package supporting the company's acquisition of assets from Raytheon Technologies, according to sources. The seven-year term loan priced tight to talk at L+400, with a 0.75% Libor floor and an original issue discount of 99.5 via an RBC Capital Markets-led arranger group. The loan was upsized by $35 million during syndication, and a 25-basis-point leverage-based margin step-down was added. In addition to the first-lien term loan, financing for the issuer will include a privately placed $185 million, eight-year second-lien term loan and an asset-based revolver that is being upsized to $100 million from $75 million. 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.

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