B/E Aerospace tenders for 8½% notes due 2010

By Jennifer Chiou

New York, July 10 - B/E Aerospace, Inc. announced the launch of a cash tender offer and consent solicitation for its $175 million of 8½% senior notes due 2010.

The consent deadline is 5 p.m. ET on July 21. The offer ends at 5 p.m. ET on Aug. 7.

For each $1,000 principal amount of notes, the payout will be based on the present value of $1,042.50 - the redemption amount of the notes on their first call date, Oct. 1, 2007 - discounted using the yield to maturity of the 4% Treasury due Sept. 30, 2007 and 50 basis points. The payout includes a $20.00 consent payment for those who deliver consents by the early deadline.

Pricing will be set at 2 p.m. ET on July 21.

The company is soliciting consents to amendments to eliminate substantially all of the restrictive covenants and certain events of default in the note indenture.

B/E Aerospace is seeking consents from a majority of noteholders.

As part of the tender, the company said it expects to establish a $150 million revolving credit facility.

UBS Securities LLC (888 722-9555, ext. 4210 or call collect 203 719-4210), Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-7596) and J.P. Morgan Securities Inc. (call collect 212 270-7407) are the dealer managers. Global Bondholder Services Corp. (866 804-2200) is the depositary and information agent.

The manufacturer of aircraft cabin interior products and aftermarket distributor of aerospace fasteners is based in Wellington, Fla.

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