K&F Industries to bring $750 to $800 million in debt to help fund acquisition

By Sara Rosenberg

New York, Oct. 18 - K&F Industries Inc. will approach the bank loan and high-yield markets with a total of $750 million to $800 million in debt financing to help fund its acquisition by an affiliate of Aurora Capital Group, Aurora chairman Gerald L. Parsky told Prospect News Monday.

Lehman, JPMorgan, Goldman Sachs and Citigroup will be the lead banks on both the bank and bond transactions, with Lehman the left lead on both deals. JPMorgan is co-lead on the credit facility and Goldman is co-lead on the bonds, Parsky said.

Both debt deals are expected to launch soon since the transaction is scheduled to close in November, Parsky added.

The credit facility will contain revolving credit facility and term loan tranches.

Aurora will also contribute around $300 million to $350 million in equity to help fund the $1.06 billion cash purchase price.

K&F is a New York supplier to manufacturers and operators of commercial, general aviation and military aircraft. The company is jointly owned by Bernard L. Schwartz and Lehman Brothers Merchant Banking.

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