Published on 5/24/2016 in the Prospect News Investment Grade Daily.
New Issue: Spirit AeroSystems prices $300 million 3.85% 10-year notes with 200 bps spread
By Cristal Cody
Eureka Springs, Ark., May 24 – Spirit AeroSystems, Inc. priced $300 million of 3.85% 10-year senior notes with a spread of 200 basis points over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-) priced at 99.924 to yield 3.859%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. were the bookrunners.
The notes are guaranteed by parent company Spirit AeroSystems Holdings, Inc. and its domestic subsidiaries, other than Spirit AeroSystems, Inc.
Proceeds, together with cash, will be used to repurchase outstanding 6¾% senior notes due 2020 or for other general corporate purposes.
Spirit AeroSystems is a Wichita, Kan.-based maker of commercial and military airplane components, including fuselages, propulsion systems and wings.
| Issuer: | Spirit AeroSystems, Inc.
|
| Guarantor: | Spirit AeroSystems Holdings, Inc. and its domestic subsidiaries, excluding Spirit AeroSystems, Inc.
|
| Amount: | $300 million
|
| Maturity: | June 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc.
|
| Senior co-manager: | Wells Fargo Securities, LLC
|
| Co-managers: | MUFG, U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.85%
|
| Price: | 99.924
|
| Yield: | 3.859%
|
| Spread: | Treasuries plus 200 bps
|
| Call feature: | Make-whole call before March 15, 2026 at Treasuries plus 30 bps; on or after March 15, 2026 at par
|
| Pricing date: | May 24
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
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