Willkie advised Platinum Equity on high yield offerings and asset-backed revolving loan facility.
On January 9, Platinum Equity completed the acquisition of Wesco Aircraft Holdings, Inc. (NYWE: WAIR), one of the world’s leading distributors and providers of comprehensive supply chain management services to the global aerospace industry, in a transaction valued at approximately $1.9 billion. At closing, Platinum Equity portfolio company Pattonair, a provider of supply chain management services for the aerospace and defense industries based in the UK, combined with Wesco Aircraft. Wesco is now a privately held company, and shares of its common stock are no longer listed on any public market.
The transaction was financed through a combination of (a) Wesco’s issuance of (i) $2,075,000,000 aggregate principal amount of 8.50% Senior Secured Notes, due 2024, 9.00% Senior Secured Notes, due 2026 and 13.125% Senior Notes, due 2027, which initially closed on November 27, 2019, and (ii) $100,000,000 aggregate principal amount of 13.75% Senior PIK Notes, due 2028, which closed on January 9,2020 (b) a syndicated $375,000,000 asset-based revolving loan facility led by Bank of America Merrill Lynch and (c) equity financing provided by affiliates of Platinum Equity.
Wesco Aircraft is one of the world’s leading distributors and providers of comprehensive supply chain management services to the global aerospace industry. Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world in a broad range of markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Pattonair is a leading global aerospace and defense supply chain provider, with over 40 years of experience in the industry.
The cross-border Willkie deal team that handled the issuance of the Notes was led by partners Cristopher Greer, Jennifer Tait and Howard Block. The asset-based revolving loan facility was led by partner Joshua Deason.
Click here to read Willkie’s August 16, 2019 deal announcement.