Orbital ATK talks $400 million eight-year notes to yield 5¼%-5½%; pricing Tuesday

By Paul A. Harris

Portland, Ore., Sept. 21 – Orbital ATK, Inc. talked its $400 million offering of eight-year senior notes (Ba3/BB/BB+) to yield 5¼% to 5½%, according to a syndicate source.

Official talk comes at the tight end of earlier guidance in the 5½% area, a trader said.

Books close at noon ET on Tuesday, and the Rule 144A and Regulation S with registration rights offering is set to price thereafter.

Wells Fargo Securities LLC is the left bookrunner. BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

MUFG, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the lead managers.

BB&T, Fifth Third Bank, KeyBanc Capital Markets, PNC Capital Markets, Regions and SMBC Nikko are the co-managers.

The notes become callable after three years at par plus 75% of the coupon.

The Dulles, Va.-based designer and manufacturer of rocket systems plans to use the proceeds, together with borrowings under its new credit facility, to refinance its existing credit facilities.

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