Hawker Beechcraft to start roadshow Wednesday for $1.2 billion four-part note offering

By Paul A. Harris

St. Louis, March 5 - Hawker Beechcraft Corp. will start a roadshow on Wednesday for its $1.2 billion four-part offering of notes (B-), according to an informed source.

Pricing is expected to take place late in the week of March 12.

The Wichita, Kan., aircraft manufacturer is offering eight-year notes in three tranches:

• Senior fixed-rate notes, non-callable for four years;

• Senior pay-in-kind toggle notes, non-callable for four years; and

• Senior floating-rate notes, non-callable for two years.

All three tranches of the eight-year notes are rated B3 by Moody's Investors Service and B- by Standard & Poor's.

In addition, the company is offering a tranche of 10-year senior subordinated notes (Caa1/B-), which come with five years of call protection.

Goldman Sachs & Co., Credit Suisse, Citigroup and Lehman Brothers are joint bookrunners for the Rule 144A and Regulation S with registration rights offering. UBS Investment Bank is the co-manager.

Proceeds will be used to help fund the acquisition of Raytheon Aircraft, the aviation division of Raytheon Co., by Onex Corp. and GS Capital Partners for about $3.3 billion.

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