New Issue: Spirit AeroSystems prices $300 million 7½% eight-year notes at 97.804 to yield 7 7/8%

By Paul A. Harris

St. Louis, Sept. 24 - Spirit AeroSystems, Inc. priced a $300 million issue of 7½% eight-year senior notes (B2/BB/) at 97.804 to yield 7 7/8% on Thursday, according to an informed source.

The deal priced on top of price talk.

Bank of America Merrill Lynch, Credit Suisse Securities, Morgan Stanley & Co. Inc. and Barclays Capital Inc. were joint bookrunners.

Proceeds will be used to repay debt under the company's senior secured revolving credit facility and for general corporate purposes.

The issuer is a Wichita, Kan.-based supplier of commercial airplane assemblies and components.

Issuer:	Spirit AeroSystems, Inc.
Face amount:	$300 million
Proceeds:	$293.412 million
Maturity:	Oct. 1, 2017
Security description:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Credit Suisse Securities, Morgan Stanley & Co. Inc., Barclays Capital Inc.
Co-managers:	RBC Capital Markets Corp., Scotia Capital (USA) Inc.
Coupon:	7½%
Price:	97.804
Yield:	7 7/8%
Spread:	471 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Oct. 1, 2013, then callable at a premium
Equity clawback:	35% at 107.50 until Oct. 1, 2012
Trade date:	Sept. 24
Settlement date:	Sept. 30
Ratings:	Moody's: B2
	Standard & Poor's: BB
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	7 7/8% area

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