By Lisa Kerner
Charlotte, N.C., June 16 - Meggitt plc announced it completed a private placement of $600 million of senior notes with international institutional investors.
The notes are in four series with maturities of seven, 10 and 12 years and coupons of between 4.62% and 5.17%, according to a company news release.
Meggitt said the initial offering of $200 million was more than five times oversubscribed.
The U.K.-based global engineering group will use the proceeds to lengthen its debt maturity profile, replacing some of Meggitt's existing bank facilities that were due to expire between 2012 and 2013.
Of the $600 million, $250 million was drawn down in June.
The balance of $350 million is to be drawn in October, coinciding with the maturity of some existing fixed-rate swaps, the company said.
According to Meggitt, it will continue to maintain an appropriate balance between fixed- and variable-rate debt, with part of the new placement being swapped into floating-rate debt, to take advantage of current low interest rates.
| Issuer: | Meggitt plc
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Coupon: | 4.62% to 5.17%
|
| Maturities: | 7, 10 and 12 years
|
| Distribution: | Private placement
|
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