By Paul A. Harris
Portland, Ore., April 14 – Spirit AeroSystems, Inc. priced an upsized $1.2 billion issue of five-year senior secured second-lien notes (Ba2/BB-) at par to yield 7½% in a Tuesday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of the 7½% to 7¾% yield talk.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC.
The oversubscribed deal had initially been in the market with guidance in the low 8% area, according to a trader.
The Wichita, Kan.-based maker of commercial and military airplane components plans to use the proceeds for general corporate purposes, including repayment of some or all of amounts under a revolver, which amounts may be immediately re-borrowed.
| Issuer: | Spirit AeroSystems, Inc.
|
| Amount: | $1.2 billion, increased from $1 billion
|
| Maturity: | April 15, 2025
|
| Securities: | Senior secured second-lien notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC
|
| Senior co-manager: | SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Huntington Investment Co., PNC Capital Markets LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 707 bps
|
| Call protection: | Two years
|
| Trade date: | April 14
|
| Settlement date: | April 17
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Drive-by
|
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