Huntington Ingalls sets roadshow Feb. 28 week for $1.18 billion two-part offering of notes

By Paul A. Harris

Portland, Ore., Feb. 25 - Huntington Ingalls Industries, Inc. plans to conduct an investor roadshow for its $1.175 billion two-part offering of senior notes (Ba3/B+/BB) during the Feb. 28 week, according to an informed source.

The deal is structured into tranches of seven-year notes, which will come with four years of call protection, and 10-year notes, which will come with five years of call protection.

Credit Suisse Securities, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities are the joint bookrunners for the Rule 144A with registration rights offering.

The notes in both tranches feature three-year 35% equity clawbacks and 101% poison puts.

Proceeds will be used to capitalize the company, as well as to fund a cash transfer to Northrop Grumman, which is spinning off Huntington Ingalls, Northrop's shipbuilding business.

Proceeds will also be used for general corporate purposes.

The proceeds will be funded into escrow prior to the effective date of the spinoff.

Huntington Ingalls Industries will be based in Newport News, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.