By Paul Deckelman
New York, May 8 - Evergreen Aviation Inc. sold $215 million of senior secured second lien notes due May 15, 2010 (B3/B-) at par to yield 12%, high yield syndicate sources said Thursday.
The deal was downsized from the $225 million originally expected. The notes priced at the wide end of pre-deal market price talk of a yield in the 11¾%-to 12% range.
The Rule 144A/Regulation S offering came to market via bookrunning manager Morgan Stanley, with PNC and Merrill Lynch & Co. as co-managers.
The McMinnville, Ore.-based air cargo shipping company plans to use the deal proceeds to repay debt. The collateral for the notes is the second priority lien on the collateral securing the company's new credit facility.
| Issuer: | Evergreen Aviation Inc.
|
| Amount: | $215 million (downsized from $225 million initially)
|
| Maturity: | | May 15, 2010
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| Security description: | Senior secured second lien notes
|
| Bookrunner: | Morgan Stanley
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| Co-managers: | PNC, Merrill Lynch
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| Coupon: | 12%
|
| Price | | Par
|
| Yield: | 12%
|
| Spread: | 888 basis points over 6½% Treasury due 2010
|
| Call features: | Non-callable for four years, then callable at 106, 103 and finally at par
|
| Equity clawback: | Three years for up to 35% of issue at 112%
|
| Settlement date: | May 16, flat
|
| Ratings: | Moody's : B3
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| Standard & Poor's: B-
|
| Rule 144A Cusip: | 30024DAE0
|
| Price talk: | 11¾%-12%
|
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