Spirit AeroSystems talks $200 million five-year exchangeable notes at 3.25%-3.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Nov. 7 – Spirit AeroSystems Inc. plans to price $200 million of five-year exchangeable notes after the market close on Wednesday with price talk for a coupon of 3.25% to 3.75% and an initial exchange premium of 27.5% to 32.5%, according to a market source.

Morgan Stanley & Co. LLC (lead left), Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc. and Citigroup Global Markets Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes will be guaranteed by Spirit AeroSystems Holdings Inc. and wholly owned subsidiary Spirit AeroSystems North Carolina Inc.

The notes are non-callable until Nov. 6, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes.

Spirit AeroSystems is a Wichita, Kan.-based aerostructures manufacturer.

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