By Paul A. Harris
St. Louis, Jan. 27 - Hexcel Corp. priced an upsized $225 million issue of 10-year senior subordinated notes (Caa1/B-) at par to yield 6¾%, according to a syndicate source.
Price talk was 6¾% to 7%.
Goldman Sachs & Co. ran the books for the Rule 144A offering. Deutsche Bank Securities and Credit Suisse First Boston were joint lead managers. Banc of America Securities LLC was the co-manager.
Proceeds will be used to partially redeem the company's 9¾% senior subordinated notes due 2009.
The issue was upsized from $200 million, with the extra proceeds to be used to repay more debt, according to a market source.
Hexcel is a Stamford, Conn.-based manufacturer of composite materials for aerospace, defense, electronics and industrial purposes.
| Issuer: | Hexcel Corp.
|
| Amount: | $225 million (increased from $200 million)
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Joint lead managers: | Deutsche Bank Securities, Credit Suisse First Boston
|
| Co-manager: | Banc of America Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 254 basis points
|
| Call features: | Callable after Feb. 1, 2010 at 103.375, 102.25, 101.125, par on and after Feb. 1, 2013
|
| Equity clawback: | Until Feb. 1, 2008 for 35% at 106.75
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 6¾%-7%
|
|
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