30th Oct 2019 09:23
(Alliance News) - BBA Aviation PLC said Wednesday it has priced its USD650 million senior unsecured note offering at 4.00%.
The offer for the 4.00% senior unsecured notes due 2028 is expected to close this Friday.
The notes will be issued by a wholly-owned subsidiary of the FSTE 250-listed aviation support services provider and guaranteed by BBA Aviation and another wholly-owned group subsidiary.
The company said it intends to use the proceeds from the offering, to prepay existing debt from its 2019 term loan facility and partly prepay its Facility C term Llan due to be repaid in September 2020.
David Crook, BBA Aviation finance director said: "We are pleased to have completed a further unsecured bond issue, after our successful inaugural offering in April 2018. This will further align our debt maturity profile with the long-term nature of the Signature FBO lease portfolio."
Moody's on Tuesday had assigned a Ba2 rating for the notes, but downgraded the outlook for the company to Negative from Stable.
The negative outlook reflects the fact that the rating is weakly positioned with relatively high leverage, and also reflects the risk that further releveraging might occur, the ratings agency added.
Shares in BBA Aviation were 0.8% lower in London on Wednesday morning at 299.20 pence each.
By Paul McGowan; [email protected]
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