Alliant Techsystems $400 million 10-year deal seen pricing Monday

By Paul Deckelman

New York, March 3 - Alliant Techsystems Inc.'s planned $400 million offering of 10-year senior subordinated notes is expected to price late Monday, high yield primary market sources said Friday.

They said that the deal would come to market on Monday afternoon, following a call with potential investors scheduled for 11 a.m. ET.

The bonds will be non-callable for the first five years after issue, other than make-whole call at 50 basis points over Treasuries. The offering has been registered with the Securities and Exchange Commission.

Banc of America Securities LLC is the sole underwriter for the bond offering by the Minneapolis-based high-tech defense contractor, which plans to use the new-deal proceeds to fund its previously announced tender offer for all of its $400 million of outstanding 8½% senior subordinated notes due 2011. The tender offer is scheduled to expire on March 28.

Ratings for the new deal are to be determined, although it is likely they will be in line with the existing bonds' B2 rating from Moody's Investors Service and B rating from Standard & Poor's.

Alliant is a $3.1 billion advanced weapon and space systems company whose customers include the U.S. government, its allies and major primary defense contractors.

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