By Paul A. Harris
Portland, Ore., Dec. 6 – Moog Inc. priced an upsized $500 million issue of eight-year senior notes (Ba3/BB) at par to yield 4¼% on Friday, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of the 4¼% to 4½% yield talk, which tightened from early guidance of 4½% to 4¾%, sources said.
At the time the upsized deal launched at 4¼%, it was playing to $3 billion of demand, a trader said.
J.P. Morgan Securities LLC, BofA Securities Inc., HSBC Securities (USA) Inc., Citizens Capital Markets Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The East Aurora, N.Y.-based manufacturer of hydraulic motion components plans to use the proceeds to redeem its $300 million of outstanding 5¼% senior notes due 2022 and pay down its senior credit facility.
| Issuer: | Moog Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Tenor: | Eight years
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., HSBC Securities (USA) Inc., Citizens Capital Markets Inc. and Wells Fargo Securities LLC
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 246 bps
|
| Call protection: | Three years
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4¼% to 4½%
|
| Marketing: | Roadshow
|
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