By Cristal Cody
Tupelo, Miss., Feb. 13 – Hexcel Corp. priced an upsized $400 million of 3.95% 10-year senior notes (Baa3/BBB-) on Monday at 99.559 to yield 4.004%, or Treasuries plus 157 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance in the Treasuries plus 160 bps area, plus or minus 3 bps.
The deal was upsized from $300 million.
BofA Merrill Lynch and Goldman Sachs & Co. were the bookrunners.
The interest rate will be subject to adjustment if Moody’s Investors Service or S&P Global Ratings downgrades the company’s ratings or downgrades and then subsequently upgrades the ratings, according to a 424B5 filing with the SEC.
Proceeds from the deal will be used to reduce debt under Hexcel’s revolving credit facility and for general corporate purposes.
Hexcel is a composites company based in Stamford, Conn.
| Issuer: | Hexcel Corp.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2027
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co.
|
| Senior managers: | Citizens Capital Markets, Inc., Wells Fargo Securities, LLC
|
| Co-managers: | SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.95%
|
| Price: | 99.559
|
| Yield: | 4.004%
|
| Spread: | Treasuries plus 157 bps
|
| Call feature: | Make-whole call before Nov. 15, 2026 at greater of par and Treasuries plus 25 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 160 bps area, plus or minus 3 bps
|
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