S&P gives Spirit AeroSystems notes BBB-

S&P said it assigned its BBB- issue-level rating to Spirit AeroSystems Inc.'s proposed $1.3 billion of senior notes.

The notes will be issued in three tranches, including senior floating-rate notes due in 2021 and two tranches of fixed-rate senior notes with maturities yet to be determined.

The company is also planning to enter into a new unsecured credit facility (unrated) that will consist of an $800 million revolver, $206.25 million term loan A and $250 million delayed-draw term loan, all maturing in June 2023.

The company will use the net proceeds from the notes, delayed draw term loan and drawings under the revolver to refinance the company's $300 million 5.25% notes due in 2022, repay $250 million of existing term loans, fund a $725 million stock repurchase, pay the for the $650 million acquisition of Asco Industries NV and pay related fees and expenses.

The agency said the unsecured debt is rated the same as the corporate credit rating because no significant elements of subordination risk are present in the capital structure.

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