Worldwide Flight Services on the road with €225 million seven-year offering; yield seen above 8%

By Paul Deckelman

New York, June 17 – Worldwide Flight Services Inc. has begun a roadshow to market its proposed €225 million offering of seven-year unsecured notes (expected ratings B2/B) to potential investors, high-yield syndicate sources said Wednesday.

The roadshow began on Tuesday and will run through Friday, with pricing expected thereafter.

One market source said that he heard that the deal was being shopped around in “the low-to-mid 8s” percentage area, but he thinks it might get done “in the high 8s.”

Morgan Stanley & Co LLC and ING Financial Markets LLC are the global coordinators for the transaction, with Morgan Stanley handling billing and delivery.

The bonds will come with three years of call protection.

Proceeds from the offering will be used to support the international cargo-handling company’s acquisition by Platinum Equity LLC, a Beverly Hills, Calif.-based global investment firm, from Paris-based private equity firm LBO France. LBO France had bought Worldwide Flight Services in 2006.

The Platinum Equity transaction, announced on April 27, is expected to close at the end of June. Financial terms were not announced.

Worldwide Flight Services – based in the Paris suburb of Roissy-en-France, with its operations in the United States based in Irving, Texas – is thought to be the world’s largest cargo handler and a leading global provider of ground handling and technical services. It maintains a presence at more than 140 major airports in more than 22 countries on five continents, serving 300 airlines around the world.

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