By Paul A. Harris
Portland, Ore., June 30 – DAE Aviation Holdings, Inc., the indirect parent of StandardAero, priced a $485 million issue of 10% eight-year senior notes (Caa2/CCC) at 98.65 to yield 10¼% on Tuesday, according to a syndicate source.
The yield printed on top of yield talk. The reoffer price came slightly rich to discount talk of approximately 1.5 points.
Jefferies LLC was the left bookrunner. KKR Capital Markets LLC and MCS Capital Markets LLC were the joint bookrunners.
Proceeds will be used to help fund the buyout of StandardAero by Veritas Capital from Dubai Aerospace Enterprise Ltd.
The initial borrowing under the company’s new ABL facility will be increased by $6.5 million to fund the original issue discount on the notes.
StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.
| Issuer: | DAE Aviation Holdings, Inc.
|
| Face amount: | $485 million
|
| Proceeds: | $478 million
|
| Maturity: | July 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Jefferies LLC
|
| Joint bookrunners: | KKR Capital Markets LLC, MCS Capital Markets LLC
|
| Coupon: | 10%
|
| Price: | 98.65
|
| Yield: | 10¼%
|
| First call: | July 15, 2018 at 107.5
|
| Equity clawback: | 40% at 110 until July15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | June 30
|
| Settlement date: | July 7
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% yield, including about 1.5 points OID
|
| Marketing: | Roadshow
|
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