New Issue: Alliant Techsystems upsizes to $350 million, sells 10-year notes at par to yield 6 7/8%

By Paul A. Harris

St. Louis, Sept. 8 - Alliant Techsystems Inc. priced an upsized $350 million issue of 10-year senior subordinated notes (B1/BB-/) at par to yield 6 7/8% on Wednesday, according to an informed source.

The yield printed on top of the 7% area price talk.

Bank of America Merrill Lynch and RBS Securities Inc. were the joint bookrunners for the quick-to-market deal, which was upsized from $300 million.

Joint lead managers were SunTrust Robinson Humphrey Inc., US Bank and Wells Fargo Securities.

Co-managers were Mitsubishi UFJ Securities and RBC Capital Markets Corp.

The Minneapolis-based aerospace and defense company will use the proceeds to fund the redemption of its 2¾% convertible senior subordinated notes due 2024 and for general corporate purposes.

Issuer:	Alliant Techsystems Inc.
Amount:	$350 million, increase from $300 million
Maturity:	Sept. 1, 2020
Securities:	Senior subordinated notes
Bookrunners:	Bank of America Merrill Lynch, RBS Securities Inc.
Joint lead managers:	SunTrust Robinson Humphrey Inc., US Bank, Wells Fargo Securities
Co-managers:	Mitsubishi UFJ Securities, RBC Capital Markets Corp.
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	423 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2015, then callable at 103.438, 102.292, 101.146, par after Sept. 15, 2018
Equity clawback:	35% at 106.875 until Sept. 15, 2013
Trade date:	Sept. 8
Settlement date:	Sept. 13
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	7% area
Marketing:	Quick to market

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