Ducommun talks $200 million seven-year notes with 9½%-9¾% yield

By Paul A. Harris

Portland, Ore., June 22 - Ducommun Inc. talked its $200 million offering of seven-year senior notes (B3/B-) with a 9½% to 9¾% yield on Wednesday, according to an informed source.

The order books close at noon ET Thursday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S notes come with four years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

Proceeds, along with a $250 million credit facility, will be used to fund the acquisition of LaBarge Inc. for $19.25 per share in cash, or $310.3 million.

In addition to funding the acquisition, about $33.5 million of the debt proceeds will be used to refinance existing debt at Ducommun and LaBarge, $14.7 million will be used to put cash on the balance sheet and $31.5 million will be used for transaction and financing fees.

Ducommun is a Carson, Calif.-based provider of engineering and manufacturing services to the aerospace and defense industry. LaBarge is a St. Louis-based supplier of electronics manufacturing services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.