New Issue: K&F Parent prices $55 million 10-year PIK notes at par to yield 11½%

By Paul A. Harris

St. Louis, Feb. 4 - K&F Parent Inc. priced a $55 million issue of 10-year senior payment-in-kind notes (Caa2/B-) at par to yield 11½%, according to an informed source.

Price talk was 11½%.

The notes are PIK for life.

Lehman Brothers ran the books for the Rule 144A offering.

The proceeds will be used to redeem a portion of the company's senior preferred stock. The sponsor is Aurora Capital Group.

K&F Parent is a New York City-based aircraft parts manufacturer.

Issuer:	K&F Parent Inc.
Amount:	$55 million
Maturity:	Feb. 1, 2015
Security description:	Senior PIK notes
Bookrunner:	Lehman Brothers
Coupon:	11½%
Price:	Par
Yield:	11½%
Spread:	744 basis points
Call features:	Callable after Feb. 1, 2007 at 102, 101 and par on and after Feb. 1, 2009
Equity clawback:	Until Feb. 1, 2007 the company may redeem all, but not less than all, or up to 35% of the notes with the proceeds of equity offerings at 105.75
Trade date:	Feb. 4
Settlement date:	Feb. 11
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Price talk:	11½%

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