By Paul A. Harris
Portland, Ore., Oct. 29 – BBA Aviation plc priced a $650 million issue of 8.25-year senior notes (Ba2/BB) at par to yield 4% on Tuesday, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 4¼% area. Initial guidance was in the mid-4% area.
The deal, which was announced to the market early on Monday, was heard to have generated more than $1.5 billion of orders by early Tuesday morning, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, HSBC Securities, JPMorgan, NatWest, SMBC Nikko and SunTrust Robinson Humphrey.
The London-based aviation services company plans to use the proceeds, together with a portion ($250 million) of proceeds from the anticipated sale of the Ontic business, to prepay debt under its facility C term loan and 2019 term loan, and pay down its revolver.
In late July 2019 BBA Aviation announced it had reached an agreement to sell Ontic, a provider of OEM-licensed parts for legacy aerospace platforms, to CVC Fund Vll, for an enterprise value of $1,365,000,000.
| Issuer: | BBA U.S. Holdings, Inc.
|
| Amount: | $650 million
|
| Maturity: | March 1, 2028
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Barclays, HSBC Securities, JPMorgan, NatWest, SMBC Nikko and SunTrust Robinson Humphrey
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| First call: | March 1, 2023 at 102
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4¼% area
|
| Marketing: | Roadshow
|
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