New Issue: B/E Aerospace upsizes 10-year notes to $175 million, yield 8½%

By Paul A. Harris

St. Louis, Oct. 2 - B/E Aerospace, Inc. priced an upsized $175 million of senior notes due Oct. 1, 2010 (B3/B+) at par Thursday to yield 8½%, according to a market source.

Price talk was for a yield in the 9% area. The deal was increased from a planned size of $150 million.

Credit Suisse First Boston ran the books on the Rule 144A offering. The co-managers were JP Morgan, Jefferies & Co. and Stephens.

B/E will use proceeds to repay its credit facility and for working capital and general corporate purposes.

The issuer is a Wellington, Fla.-based manufacturer of aircraft cabin interior products and an aftermarket distributor of aerospace fasteners.

Issuer:	B/E Aerospace, Inc.
Amount:	$175 million (from $150 million)
Maturity:	Oct. 1, 2010
Security description:	Senior notes
Bookrunner:	Credit Suisse First Boston
Co-managers:	JP Morgan, Jefferies & Co., Stephens
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	507 basis points
Call features:	Callable after Oct. 1, 2007 at 104.25, then 102.125, declining to par on Oct. 1, 2009 and thereafter
Equity clawback:	Until Oct. 1, 2006 for 35% at 108.50
Settlement date:	Oct. 7, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B+
Rule 144A Cusip:	055381AN7
Price talk:	9% area

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