By Paul A. Harris
St. Louis, June 17 - Argo-Tech Corp. sold $250 million of seven-year senior notes (B1/B) at par Thursday to yield 9¼%, according to market sources.
Price talk was 9¼% to 9½%.
JP Morgan ran the books for the Rule 144A issue. Jefferies & Co. and NatCity Investments were the co-managers.
Proceeds, along with the company's proposed amended and restated senior credit facility and cash on hand, will be used to purchase or redeem $195 million of its 8 5/8% senior subordinated notes, to repay $19.9 million under its existing senior credit facility and to purchase preferred stock of parent company AT Holdings Corp. for $57.6 million.
The issuer is a Cleveland, Ohio, manufacturer of aircraft fuel-flow devices.
| Issuer: | Argo-Tech Corp.
|
| Amount: | $250 million
|
| Maturity: | July 1, 2011
|
| Security description: | Senior notes
|
| Bookrunner: | JP Morgan
|
| Co-managers: | Jefferies & Co., NatCity Investments
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 498 basis points
|
| Call features: | Callable after July 1, 2008 at 104.625, 102.313, par on or after July 1, 2010
|
| Equity clawback: | Until July 1, 2007 for 35% at 109.25
|
| Pricing date: | June 17
|
| Settlement date: | June 23
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | 9¼%-9½%
|
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