19th May 2011 07:00
19 May 2011
BBA Aviation plc US$300million Private Placement
BBA Aviation plc announces the successful completion of an issue of US private placement loan notes with institutional investors.
The issue consists of US$300m of notes with maturities of 7, 10 and 12 years and coupons of between 5.2% and 5.9%. The notes have a weighted average maturity of 9.2 years and weighted average coupon of 5.6%. The initial offering of US$150m was more than four times oversubscribed. The proceeds were received on 18 May 2011 and are being used to repay drawings under the Group's existing committed bank facility. Half of the proceeds have been swapped from fixed into variable rates.
The private placement complements the recently signed $750m multi-currency revolving credit facility. The bank facility has a split maturity with a 3-year term for $250m and 5-year term for $500m.
Mark Hoad, BBA Aviation Group Finance Director commented:
"We are pleased to have secured attractively priced, long-term debt, diversifying our sources of debt funding. The strong demand from institutional investors clearly reflects BBA Aviation's resilient performance through the downturn, the benefits from the initial stages of market recovery and confidence in its prospects for the future.
The combination of our new bank debt facility and private placement provide us with a stable, long-term financing structure which will support the execution of our strategy of organic growth and selective consolidation in fragmented markets."
Enquiries:
BBA Aviation plc
Mark Hoad, Group Finance Director / Jemma Spalton, Head of Investor Relations
020 7514 3999
Tulchan
David Allchurch / Christian Cowley / Martha Kelly
020 7353 4200
Notes to Editors
BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services and Systems businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services, Ontic and APPH) are focused on the repair and overhaul of jet engines and the design, manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.
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