Hawker Beechcraft wraps tender for 8 7/8%/9 5/8% PIK, 9¾%, 8½% notes

By Angela McDaniels

Tacoma, Wash., June 3 - Hawker Beechcraft Acquisition Co., LLC and Hawker Beechcraft Notes Co. said they received tenders for $274,471,000 of notes during the tender offer for their outstanding 8 7/8% - 9 5/8% in-kind - senior pay-in-kind-election notes due April 1, 2015, 9¾% senior subordinated notes due April 1, 2017 and 8½% senior fixed-rate notes due April 1, 2015.

Specifically, holders tendered $109,872,000 of the PIK-election notes, $75,498,000 of the 9¾% notes and $87,101,000 of the 8½% notes.

All the notes were accepted for purchase. For each $1,000 principal amount, the companies will pay $300 for the PIK-election notes, $340 for the 9¾% notes and $420 for the 8½% notes. The payment includes an early tender premium of $30.00 for each note.

The total purchase price will be $98.63 million, including interest.

The companies said they would spend up to $150 million on the offer, excluding accrued interest, increased from $100 million.

The early tender premium deadline and tender offer expiration were both midnight ET on June 2. The early deadline was extended from 5 p.m. ET on May 18.

When the offer began on May 5, the principal amount outstanding was $385,355,000 for the PIK-election notes, $220,599,000 for the 9¾% notes and $271,963,000 for the 8½% notes.

The company previously said that following completion of the offer, it plans to evaluate its future balance sheet management plans, which could include additional repurchases of notes as well as repayment under its revolving credit facility or prepayment of its term loan.

The company's management believes that cash on hand and cash from operations will be sufficient to meet requirements for the next 12 months after considering the impact of the planned tender offer.

Goldman, Sachs & Co. (800 828-3182 or collect 212 357-4692) was the dealer manager. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500) was the information agent.

Hawker Beechcraft is a Wichita, Kan., manufacturer of business jet, turboprop, piston-driven and military training aircraft.

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