New Issue: Standard Aero sells $200 million 10-year notes to yield 8¼%

By Paul A. Harris

St. Louis, Aug. 17 - Standard Aero Holdings sold $200 million of 10-year senior subordinated notes (Caa1/B-) at par on Tuesday to yield 8¼%, according to a syndicate source.

Price talk was in the 8½% area.

JP Morgan and Lehman Brothers ran the books for the Rule 144A issue. The co-manager was Credit Suisse First Boston.

Proceeds will be used to help fund the Carlyle Group's acquisition of the Standard Aero division from Dunlop Standard Aerospace Group for $670 million.

Standard Aero is a Winnipeg, Manitoba-based provider of maintenance, repair and overhaul services for aircraft engines and industrial gas turbines.

Issuer:	Standard Aero Holdings
Amount:	$200 million
Maturity:	Sept. 1, 2014
Security description:	Senior subordinated notes
Bookrunners:	JP Morgan, Lehman Brothers
Co-manager:	Credit Suisse First Boston
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	403 basis points
Call features:	Treasuries plus 50 basis points make-whole call until Sept. 1, 2009, then callable at 104.125, 102.75, 101.375, par on or after Sept. 1, 2012
Equity clawback:	Until Sept. 1, 2007 for 35% at 108.25
Pricing date:	Aug. 17
Settlement date:	Aug. 20
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Price talk:	8½% area

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