Huntington Ingalls gets early tenders for 78% of 7 1/8% notes due 2021

By Susanna Moon

Chicago, Nov. 17 – Huntington Ingalls Industries, Inc. said investors had tendered $469.1 million principal amount, or 78.18%, of its outstanding 7 1/8% senior notes due 2021 as of 5 p.m. ET on Nov. 16, the consent date.

Huntington Ingalls purchased all of the tendered notes on Nov. 17 using proceeds of its $600 million principal amount of 5% senior notes due 2025, according to a company notice.

The tender offer will continue until 11:59 p.m. ET on Dec. 1. The offer began on Nov. 2.

The company said it secured the needed majority of tenders and consents to amend the notes.

As previously announced, Huntington Ingalls is soliciting consents to reduce the notice period required for optional redemptions, to eliminate most of the covenants and events of default and to modify other note provisions.

The total purchase price will be $1,056.43 for each $1,000 principal amount of notes tendered before the consent payment date.

The total payment includes a consent premium of $30.00 per $1,000 principal amount.

Those who tender their notes after the consent deadline will receive $1,026.43 per $1,000 of notes.

Holders will also receive accrued interest to but excluding the settlement date, which will be Dec. 2 for remaining tenders.

Tendered notes may no longer be withdrawn as of the early deadline.

The company plans to call for redemption any notes that remain after the tender offer and will use remaining proceeds from the issue of 5% notes and cash on hand to fund the redemption.

D.F. King & Co., Inc. (212 269-5550, 866 620-2538 or hii@dfking.com) is the information agent. J.P. Morgan Securities LLC (212 834-3617 or toll-free at 866 834-4666) and BofA Merrill Lynch (980 387-9534 or 888 292-0070) are the dealer managers for the tender offer and the solicitation agents.

Based in Newport News, Va., Huntington Ingalls Industries designs, builds and manages the life-cycle of nuclear and conventionally powered ships for the U.S. Navy and the U.S. Coast Guard.

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