Worldwide Flight Services sets talk in €590 million, $400 million secured notes offering

By Paul A. Harris

Portland, Ore., Feb. 3 – Worldwide Flight Services Group set price talk in its €590 million and $400 million offerings of five-year senior secured notes (B3/B), according to market sources.

The Rule 144A and Regulation S deal is coming in two tranches of fixed-rate notes and one tranche of floating-rate notes.

A $400 million tranche of fixed-rate notes is talked to yield in the 8% area, at the tight end of the 8% to 8¼% initial guidance.

A €340 million tranche of fixed-rate notes is talked in the 6½% area, tighter than the 6¾% to 7% initial guidance. The fixed-rate notes are being sold with two years of call protection.

A €250 million tranche of floating-rate notes is talked with a spread to Euribor in the 625 basis points area at par, with no Euribor floor, tight to initial guidance in the Euribor plus 650 bps area at par. The floating-rate notes come with one year of call protection.

The notes are set to price on Thursday.

Global coordinator and physical bookrunner Barclays will bill and deliver and is also the left bookrunner for the dollar-denominated notes. Goldman Sachs is also a global coordinator and physical bookrunner.

BofA, Citigroup, HSBC, ING, Morgan Stanley, MUFG and RBC are the joint bookrunners.

The issuing entity will be Promontoria Holding 264 BV, a special purpose vehicle indirectly controlled by funds managed or advised by sponsor Cerberus Capital Management, LP.

The Austin, Tex.-based aircraft ground support services provider plans to use the proceeds to refinance debt and fund cash to its balance sheet.

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