Ares Management Corp (Ares) is leading talks to potentially make a new preferred equity investment in Consolidated Precision Products (CPP), an aerospace part manufacturer owned by Warburg Pincus, according to a report by Bloomberg.
Quoting unnamed sources familiar with the matter, the report said that deal would fully refinance the company’s $356m second-lien debt and partially repay a $1.1bn first-lien debt. Ares and Warburg Pincus are discussing a yield of around 15% for the preferred piece.
The deal will also includes a payment-in-kind component that would allow the company to pay some of the interest with more principal instead of cash, according to the report.
