According to an 8K filed with the SEC, Bank of America is serving as administrative and collateral agent on a $400 million senior secured term loan B credit facility for Spirit AeroSystems Holdings. The term loan closed concorruecent with the closing of a $500 million aggregate principal amount of 5.5% senior secured first lien notes due 2025, which were issued by Spirit AeroSystems, a wholly owned subsidiary of Spirit AeroSystems Holdings.
Spirit AeroSystems plans to use the net proceeds from the offering of the notes and the proceeds from the borrowing of loans under the term loan for general corporate purposes. Additionally, in connection with closing of the notes offering and the term loan, Spirit AeroSystems terminated its existing senior secured credit facility, including the revolving credit facility thereunder.
The notes and the term loan are guaranteed on a senior secured basis by Spirit AeroSystems Holdings and Spirit AeroSystems North Carolina, a wholly owned subsidiary of Spirit AeroSystems (collectively, the guarantors), and secured by certain real property and personal property, including certain equity interests owned by Spirit AeroSystems, as issuer or borrower, as applicable, and the guarantors. The notes, the obligations under the term loan and the related guarantees are Spirit AeroSystems’ and the guarantors’ senior secured obligations and will rank equally in right of payment with all of their existing and future senior indebtedness, effectively equal with their existing and future indebtedness secured on a pari passu basis by the collateral for the notes and the obligations under the term loan to the extent of the value of the collateral (including Spirit AeroSystems’ senior notes due 2026), effectively senior to all of their existing and future indebtedness that is not secured by a lien, or is secured by a junior-priority lien, on the collateral for the notes and the obligations under the term loan to the extent of the value of the collateral, effectively junior to any of their other existing and future indebtedness that is secured by assets that do not constitute collateral for the notes and the obligations under the term loan to the extent of the value of such assets, and senior in right of payment to any of their existing and future subordinated indebtedness.
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers.
