Global Aviation $165 million notes talked at 15-16%, pricing Thursday

By Paul Deckelman

New York, Aug. 5 - Global Aviation Holdings Inc.'s $165 million senior secured bond deal (Ba3/BB-) is expected to carry a 14% coupon and price at a discount to par to yield between 15% and 16%, according to price talk heard on Wednesday.

The books are expected to close at 2 p.m. ET on Thursday, with pricing expected sometime after that.

The Peachtree City, Ga.-based passenger and cargo air carrier's Rule 144A/Regulation S offering of first-lien notes due 2013, which will include three years of call protection, is being brought to market via Jefferies & Co., Inc.

The deal has been a while in the making.

It first emerged on junk players' radar screens on July 20, then took to the road for a lengthy marketing campaign among investors two days later. Although the roadshow was originally expected to have concluded last Friday, a primaryside source said it had been extended through Wednesday.

Global Aviation Holdings plans to use the proceeds of the bond offering, along with those of its $64.1 million five-year senior secured second-lien loan being concurrently marketed to bank debt investors by Jefferies, to refinance its outstanding bank debt.

The company is a provider of worldwide commercial global passenger and cargo air transportation services under its World Airways and North American Airlines brands, and is thought to be the largest commercial provider of charter air transportation for the U.S. military.

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