Argo-Tech to fund tender with sale of $250 million seven-year notes

By Paul A. Harris

St. Louis, May 18 - Argo-Tech Corp., a Cleveland, Ohio, manufacturer of aircraft fuel-flow devices, plans to offer $250 million of seven-year senior unsecured notes (B1/B), the company said in a news release Monday.

Proceeds from the sale, and from a proposed $45 million credit facility, will be used to fund the tender for $195 million of the company's 8 5/8% senior subordinated notes due 2007. JP Morgan is the dealer manager for the tender, which is scheduled to expire on June 16.

Proceeds will also be used to repay preferred stock held by parent Argo-Tech Holdings.

No timing for, syndicate names involved with or details on the structure of the new bonds were disclosed in the news release, and the company did not immediately return a telephone call from Prospect News.

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