By Paul A. Harris
St. Louis, Feb. 15 - Aero Invest 1 SA (Avio) priced an upsized €375 million issue of 10-year senior floating-rate pay-in-kind notes (CCC+) at 99.0, according to a market source.
The notes will pay a coupon that floats at six-month Euribor plus 850 basis points, right on top of the price talk.
Goldman Sachs & Co. had the physical books for the Rule 144A/Regulation S with no registration rights issue. Lehman Brothers was the joint bookrunner. Banca Caboto SpA was the co-manager.
The PIK-for-life notes will feature a 150 basis points step up after March 1, 2008 if net consolidated leverage is greater than or equal to 3x at the Avio Holding SpA level.
Proceeds will be used to repay a vendor loan and to fund a shareholder distribution.
The issue was upsized from €350 million.
The Turin, Italy-based manufacturer of aerospace components, formerly FiatAvio, was acquired in July 2003 by The Carlyle Group, which has a 70% stake and by Finmeccanica, which has a 30% stake.
| Issuer: | Aero Invest 1 SA (Avio)
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| Amount: | €375 million (increased from €350 million)
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| Maturity: | March 1, 2015
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| Security description: | Senior floating-rate PIK notes
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| Bookrunners: | Goldman Sachs & Co. (physical books), Lehman Brothers (joint books)
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| Co-manager: | Banca Caboto SpA
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| Coupon: | Six-month Euribor plus 850 basis points
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| Price: | 99.0
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| Call features: | Callable after March 1, 2007 at 100, 102, 101, par on and after March 1, 2010
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| Rating: | Standard & Poor's: CCC+
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| Price talk: | Six-month Euribor plus 850 basis points
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