The sale of Wichita-based Raytheon Aircraft Company to GS Capital Partners and Onex Partners is expected to be completed in the first half of this year, but that company’s pending purchase has already given rise to a new company. Soon-to-be Hawker Beechcraft Corporation will apparently be starting life through the help of Hawker Beechcraft Inc. (HBI) and its subsidiary Hawker Beechcraft Notes Company. HBI “intends to commence a private placement offering to eligible purchasers of $1,200.0 million of a new issue of senior fixed rate notes due 2015.” Senior PIK- election notes due 2015, senior floating rate notes due 2015 and senior subordinated notes due 2017 will also be made available, according to a March 5 news release. All notes are expected to be eligible for resale. Upon completion of the sale of Raytheon Aircraft, the entity will be known as Hawker Beechcraft Corporation. GS Capital and Onex will not be acquiring fractional provider Flight Options or Raytheon Airline Aviation Services as part of the deal; instead these companies will remain under the Raytheon Company umbrella. Meanwhile, Raytheon Aircraft on Tuesday said it is moving its international sales headquarters, currently based in Geneva, Switzerland, to the manufacturer’s production and service facilities in Chester, U.K.
Passing The Raytheon Beechcraft Baton
Key Takeaways:
- The sale of Raytheon Aircraft Company to GS Capital Partners and Onex Partners is pending and will result in the formation of Hawker Beechcraft Corporation.
- Hawker Beechcraft Inc. plans to raise $1.2 billion through a private placement of senior fixed-rate notes and other debt instruments to help finance the new company.
- The acquisition specifically excludes fractional provider Flight Options and Raytheon Airline Aviation Services, which will remain under the Raytheon Company umbrella.
- Raytheon Aircraft is relocating its international sales headquarters from Geneva, Switzerland, to its production and service facilities in Chester, U.K.
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