New Issue: Orbital ATK prices $400 million eight-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., Sept. 22 – Orbital ATK, Inc. priced a $400 million issue of eight-year senior notes (Ba3/BB/BB+) at par to yield 5½% on Tuesday, according to a syndicate source.

The yield printed at the wide end of the 5¼% to 5½% yield talk and on top of early guidance in the 5½% area, a trader said.

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

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.

Issuer:	Orbital ATK, Inc.
Amount:	$400 million
Maturity:	Oct. 1, 2023
Securities:	Senior notes
Left bookrunner:	Wells Fargo Securities LLC
Joint bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Lead managers:	MUFG, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
Co-managers:	Fifth Third Securities Inc., PNC Capital Markets LLC, SMBC Nikko, KeyBanc Capital Markets Inc., Regions Securities LLC
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	356 bps
Call:	Make-whole call at Treasuries plus 50 bps until Oct. 1, 2018, then callable at 104.125
Trade date:	Sept. 22
Settlement date:	Sept. 29
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
	Fitch: BB+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5¼% to 5½%
Marketing:	Roadshow

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