Published on 7/19/2010 in the Prospect News High Yield Daily.
New Issue: Esterline prices upsized $250 million 10-year notes at par to yield 7%
By Paul A. Harris
St. Louis, July 19 - Esterline Technologies Corp. priced an upsized $250 million issue of 10-year senior notes (Ba3/BB/) on Monday at par to yield 7% in a quick-to-market transaction, according to an informed source.
The yield printed at the tight end of the 7 1/8% area price talk.
Bank of America Merrill Lynch and Wells Fargo Securities were the joint bookrunners for the issue, which was upsized from $200 million.
Co-managers were Mitsubishi UFJ Securities (USA), Inc., Goldman Sachs & Co., Barclays Capital Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used to tender for the company's existing 7¾% senior subordinated notes due 2013 and for general corporate purposes.
Bellevue, Wash.-based Esterline supplies products to the aerospace and defense industry.
| Issuer: | Esterline Technologies Corp.
|
| Amount: | $250 million, increased from $200 million
|
| Maturity: | Aug. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities
|
| Co-managers: | Mitsubishi UFJ Securities (USA), Inc., Goldman Sachs & Co., Barclays Capital Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 404 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug 1, 2015, then callable at 103.50, 102.333, 101.167, par on and after Aug. 1, 2018
|
| Equity clawback: | 35% at 107.0 until Aug. 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | July 19
|
| Settlement date: | Aug. 2
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7 1/8% area
|
| Marketing: | Quick-to-market
|
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