Western Global Airlines downsizes to $410 million, talks five-year notes to yield 8¾%-9%

By Paul A. Harris

Portland, Ore., Aug. 4 – Western Global Airlines LLC downsized its offering of five-year senior notes (B3/B-/B+) to $410 million from $420 million, and talked the notes to yield 8¾% to 9%, according to market sources.

Books close Wednesday afternoon, and the Rule 144A and Regulation S for life deal is set to price thereafter.

With the downsizing, the company will make a $10 million draw on its revolving credit facility.

There are also structural changes. Call protection is extended to the life of the bond from previous call protection of two years.

Upon full repayment of its term loan A the issuer may repurchase 10% of the notes annually at 103 beginning Jan. 1, 2022.

Left lead bookrunner RBC Capital Markets LLC will bill and deliver. SunTrust Robinson Humphrey Inc. is the joint bookrunner. Regions Securities LLC is the co-manager.

The Estero, Fla.-based cargo airline plans to use the proceeds to establish an employee stock ownership plan.

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