By Cristal Cody
Tupelo, Miss., May 22 – Spirit AeroSystems, Inc. sold $1.3 billion of senior notes (Baa3/BBB-) in three tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company priced $300 million of three-year floating-rate notes at par to yield Libor plus 80 basis points.
The $300 million tranche of 3.95% five-year fixed-rate notes priced at 99.98 to yield 3.954%, or a spread of Treasuries plus 105 bps.
In the final tranche, the company sold $700 million of 4.6% 10-year notes at a Treasuries plus 155 bps spread. The notes priced at 99.846 to yield 4.619%.
The notes all priced tighter than initial guidance.
BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Mizuho Securities USA Inc. and RBC Capital Markets, LLC were the bookrunners.
The notes are guaranteed by Spirit AeroSystems Holdings, Inc.
Proceeds will be used to repurchase $300 million of the company’s 5.25% senior notes due 2022, to repay about $250 million of its senior term loan A facility, for its $725 million accelerated share repurchase program and to fund its planned acquisition of S.R.I.F. NV and Asco Industries NV.
Spirit AeroSystems is a Wichita, Kan.-based maker of commercial and military airplane components, including fuselages, propulsion systems and wings.
| Issuer: | Spirit AeroSystems, Inc.
|
| Guarantor: | Spirit AeroSystems Holdings, Inc.
|
| Amount: | $1.3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Mizuho Securities USA Inc. and RBC Capital Markets, LLC
|
| Senior co-manager: | Scotia Capital (USA) Inc.
|
| Co-managers: | U.S. Bancorp Investments, Inc., BBVA Securities, Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC
|
| Trade date: | May 22
|
| Settlement date: | May 30
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Description: | Senior floating-rate notes
|
| Maturity: | June 15, 2021
|
| Coupon: | Libor plus 80 bps
|
| Price: | Par
|
| Yield: | Libor plus 80 bps
|
| Call features: | On or after May 31, 2019 at par
|
| Price guidance: | Libor plus 95 bps area
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Description: | Senior fixed-rate notes
|
| Maturity: | June 15, 2023
|
| Coupon: | 3.95%
|
| Price: | 99.98
|
| Yield: | 3.954%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before May 15, 2023; thereafter at par
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Description: | Senior fixed-rate notes
|
| Maturity: | June 15, 2028
|
| Coupon: | 4.6%
|
| Price: | 99.846
|
| Yield: | 4.619%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before March 15, 2028; thereafter at par
|
| Price guidance: | Treasuries plus 170 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
