New Issue: B/E Aerospace upsizes to $600 million, sells 8½% 10-year notes at par

By Paul A. Harris

St. Louis, June 26 - B/E Aerospace, Inc. priced an upsized $600 million issue of 10-year senior notes (Ba3/BB+) at par to yield 8½% on Thursday, according to an informed source.

The yield came at the wide end of the 8¼% to 8½% price talk.

J.P. Morgan Securities Inc., Credit Suisse and UBS Investment Bank were joint bookrunners for the Securities and Exchange Commission-registered offering, which was upsized from $500 million. RBS Greenwich Capital, SunTrust Robinson Humphrey and Wells Fargo Securities were co-managers.

Proceeds will be used to help fund the acquisition of the Consumables Solutions business of Honeywell International Inc.

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

Issuer:	B/E Aerospace Inc.
Amount:	$600 million, increased from $500 million
Maturity:	July 1, 2018
Security description:	Senior notes
Bookrunners:	J.P. Morgan Securities Inc., Credit Suisse, UBS Investment Bank
Co-managers:	RBS Greenwich Capital, SunTrust Robinson Humphrey, Wells Fargo Securities
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	445 bps
Call features:	Callable on July 1, 2013 at 104.250, 102.833, 101.417, par on and after July 1, 2016
Equity clawback:	Until July 1, 2011 for 35% at 108.50
Trade date:	June 26
Settlement date:	July 1
Ratings:	Moody's: Ba3
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	8¼% to 8½%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.