New Issue: Moog upsized $200 million 10-year notes price at par to yield 7¼%

By Paul A. Harris

St. Louis, May 28 - Moog Inc. priced an upsized $200 million issue of 10-year senior subordinated notes (Ba3/BB-/) at par to yield 7¼% on Wednesday, according to an informed source.

The issue was upsized from $150 million and was priced on top of price talk.

Banc of America Securities LLC ran the books for the quick-to-market issue of notes, which were placed via Rule 144A with registration rights. J.P. Morgan Securities Inc., HSBC and RBS Greenwich Capital were the co-managers.

Proceeds will be used to repay outstanding debt under the company's senior credit facility.

The prospective issuer is an East Aurora, N.Y., manufacturer of precision control components and systems for aircraft, aerospace, defense, industrial and medical applications.

Issuer:	Moog Inc.
Amount:	$200 million, upsized from $150 million
Maturity:	June 15, 2018
Security description:	Senior subordinated notes
Bookrunner:	Banc of America Securities LLC
Co-managers:	J.P. Morgan Securities Inc., HSBC, RBS Greenwich Capital
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	325 bps
Call protection:	Make-whole at Treasuries plus 50 bps until June 15, 2013 then callable at 103.625, 102.417, 101.208, par on and after June 15, 2016
Equity clawback:	Until June 15, 2011 for 35% at 107.25
Trade date:	May 28
Settlement date:	June 2
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights
Price talk:	7¼%

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