US-based space technology manufacturer GenCorp has priced its US$460m senior secured bond offering, the proceeds of which are being used to fund the company’s impending purchase of rocket systems developer Pratt & Whitney Rocketdyne.
The second-lien…
US-based space technology manufacturer GenCorp has priced its US$460m senior secured bond offering, the proceeds of which are being used to fund the company’s impending purchase of rocket systems developer Pratt & Whitney Rocketdyne.
The second-lien notes, which are due 2021, carry a coupon of 7.125% and priced at par.
Morgan Stanley, Citigroup and Wells Fargo are lead bookrunners and arrangers on the financing, which takes is a private placement to institutional investors.
GenCorp expects the offering to close on 28 January, subject to customary closing conditions.
Gross proceeds from the financing will be deposited into an escrow account pending Federal Trade Commission (FTC) approval of its US$550m acquisition of Rocketdyne. The regulator has requested more information on Gencorp’s Liquid Divert and Attitude Control Systems (LDACS) business and the company has said that it will seek to sell the unit in order to secure FTC approval.
If the transaction is not permitted then GenCorp has stated that it will be required redeem the notes at a price equal to 100% of the issue price plus accrued and unpaid interest.
Citigroup is advising GenCorp on the acquisition while Deutsche Bank and Moelis are advising Rocketdyne’s parent company UTC.
