New Issue: K&F Industries $250 million eight-year notes yield 9 5/8%

By Paul A. Harris

St. Louis, Dec. 13 - K&F Industries, Inc. priced $250 million of senior subordinated notes due Dec. 15, 2010 (B3/B) at par Friday to yield 9 5/8%, according to a market source.

Price talk was for a yield in the 9¾% area.

Lehman Brothers was the bookrunner.

Proceeds from the Rule 144A deal will be used to repay the existing credit facility and pay a dividend on outstanding capital stock.

The issuer is a New York City manufacturer of aircraft wheels, brakes, fuel tanks and iceguards, inflatable oil booms and other coated fabric products.

Issuer:	K&F Industries, Inc.
Amount:	$250 million
Maturity:	Dec. 15, 2010
Security description:	Senior subordinated notes
Manager:	Lehman Brothers
Coupon:	9 5/8%
Price:	Par
Yield:	9 5/8%
Spread:	594 basis points
Call features:	Callable on Dec. 15, 2006 at 104.813, 102.208, 101.604, par on Dec. 15, 2009 and thereafter
Equity clawback:	Until Dec. 15, 2005 for 35% at 109.625
Settlement date:	Dec. 20, 2002
Ratings:	Moody's: B3
	Standard & Poor's: B
Rule 144A Cusip:	482240AH1

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