New Issue: Esterline upsized $175 million 10-year notes yield 6 5/8%

By Paul A. Harris

St. Louis, Feb. 22 - Esterline Technologies Corp. of Bellevue, Wash., priced an upsized $175 million issue of 10-year senior notes (Ba3/BB-) at par to yield 6 5/8% on Thursday, according to an informed source.

The yield came at the tight end of the 6¾% area price talk.

Wachovia Securities ran the books for the Rule 144A and Regulation S with registration rights issue, which was upsized from $150 million. Banc of America Securities LLC, KeyBanc Capital Markets and Wells Fargo Securities were co-managers.

Proceeds will be used to finance the acquisition of Montreal-based CMC Electronics, Inc.

Esterline Technologies is a designer and manufacturer of highly engineered products for the defense and aerospace industry.

Issuer:	Esterline Technologies Corp.
Amount:	$175 million (increased from $150 million)
Maturity:	March 1, 2017
Security description:	Senior notes
Bookrunner:	Wachovia Securities
Co-managers:	Banc of America Securities LLC, KeyBanc Capital Markets, Wells Fargo Securities
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	189 bps
Call features:	Make-whole call at Treasuries plus 50 bps until March 1, 2012, then at 103.313, 102.208, 101.104, par on and after March 1, 2015
Equity clawback:	Until March 1, 2010 for 35% at 106.625
Trade date:	Feb. 22
Settlement date:	March 1
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	6¾% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.