MTU Aero Engines €240 million 10-year notes price talk 8½% area, to price Monday

By Paul A. Harris

St. Louis, March 18 - Price talk in the area of 8½% emerged Thursday on MTU Aero Engines Investment GmbH & Co.'s €240 million offering of 10-year senior notes (B2/B), according to a market source.

The books close on Friday, and the deal is expected to price Monday in London.

JP Morgan and Credit Suisse First Boston are joint bookrunners on the Rule 144A/Regulation S offering, which has no registration rights. Commerzbank is joint lead manager.

The notes will come with five years of call protection.

Proceeds will be used to fund the recent acquisition of MTU Aero Engines by funds managed by Kohlberg Kravis Roberts & Co.

The company is a Munich, Germany-based aircraft engine component manufacturer and independent provider of maintenance, repair and overhaul services for commercial and military jet engines.

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