B/E Aerospace prepaid $175 million of long-term debt since Q4 2009

By Lisa Kerner

Charlotte, N.C., July 27 - B/E Aerospace Inc. prepaid $75 million of its long-term debt during the second quarter of 2010, chairman and chief executive officer Amin J. Khoury said during the company's earnings conference call on Tuesday.

The company has prepaid $175 million of long-term debt since the fourth quarter of 2009.

Khoury said B/E Aerospace has no borrowings outstanding on its $350 million revolving credit facility and no debt maturities until 2014.

As of June 30, the company's net debt was $819.5 million.

According to Khoury, B/E Aerospace's net debt-to-net capital ratio was 35.5%, an improvement of 610 basis points since June 30, 2009.

"We have a solid capital position, our liquidity is strong, and both are improving," Khoury said during the call.

B/E Aerospace reported free cash flow of $46.5 million for the second quarter, representing a free cash flow conversion ratio of 125%.

Chief financial officer Thomas P. McCaffrey said the company is "very comfortable" with its current bank debt, which is floating but can be prepaid at will.

When asked about use of cash, McCaffrey said, "If we find an accretive bolt-on acquisition, we will do that. Absent that, we will pay down the debt."

B/E Aerospace is a Wellington, Fla.-based manufacturer of aircraft cabin interior products and an aftermarket distributor of aerospace fasteners.

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