By Paul A. Harris
Portland, Ore., June 12 – LMI Aerospace, Inc. priced a $250 million issue of five-year second-priority senior secured notes (B3/B/) at par to yield 7 3/8% on Thursday, according to a syndicate source.
The yield printed in the middle of the 7¼% to 7½% yield talk.
RBC Capital Markets Corp. is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners.
The notes come with 2.5 years of call protection. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.
The St. Charles, Mo.-based company plans to use the proceeds to repay its existing term loan and to repay revolver borrowings.
LMI Aerospace is a supplier of components and provider of engineering services to the aerospace and defense industries.
| Issuer: | LMI Aerospace, Inc.
|
| Amount: | $250 million
|
| Maturity: | July 15, 2019
|
| Securities: | Second-priority senior secured notes
|
| Left bookrunner: | RBC Capital Markets Corp.
|
| Joint bookrunners: | Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc. (joint books)
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 569 bps
|
| First call: | Jan. 1, 2017 at 103.688
|
| Special call: | Issuer may redeem up to 10% of the notes annually at 103 during the non-call period
|
| Equity clawback: | 35% at 107.375 until Jan. 1, 2017
|
| Trade date: | June 12
|
| Settlement date: | June 19
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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