Hawker Beechcraft Gets $120 Million Loan as Covenants Waived
Hawker Beechcraft Inc., the aircraft manufacturer owned by Goldman Sachs Group Inc. (GS) and Onex Corp. (OCX), struck a deal with lenders that will provide a $120 million loan as it negotiates with creditors to avoid default.
The company will receive the loan under its existing credit facility, Nicole Alexander, a spokeswoman for the firm, said in an e-mailed statement. Lenders holding about 70 percent of its bank debt also agreed to waive certain covenants and are letting the company defer interest payments until June 29, according to the statement.
The company in February named turnaround specialist Steve Miller as chief executive officer after hiring Perella Weinberg Partners LP as a financial adviser in December. The Wichita, Kansas-based plane maker has been seeking concessions from its lenders that will allow it to continue to operate as weaker demand for business jets depresses revenue.
“The agreement provides Hawker Beechcraft and its lenders with additional time and flexibility to work together to recapitalize the company,” Miller said in the statement.
Goldman Sachs Capital Partners, the bank’s private-equity arm, and Toronto-based Onex bought Hawker Beechcraft in 2007, giving the New York-based bank and Canada’s largest buyout firm equal stakes of 49 percent each. The company’s aircraft include the Hawker 4000 business jet and the Beechcraft King Air propjet.
Hawker Beechcraft had $2.14 billion of debt outstanding as of Sept. 30, including $630.6 million of unsecured notes and $1.4 billion of term loans backed by its assets, according to its third-quarter report. The company hasn’t yet reported results for the fourth quarter of 2011.
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