Kaman Corporation (NYSE: KAMN) has priced its offering of USD 175m aggregate principal amount of 3.25% convertible senior notes due 2024 in a private offering to qualified institutional buyers, the company said.
In connection with the offering, the company granted the initial purchasers an option to purchase, within the 13-day period beginning on, and including, the date the company first issues the notes, up to an additional USD 25m aggregate principal amount of such notes, solely to cover over-allotments, if any.
When issued, the notes will be senior unsecured obligations of the company, and will pay interest at a rate of 3.25% per year payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2017.
The company intends to use approximately USD 17.9m of the net proceeds from this offering to pay the cost of the capped call transactions.
The company intends to use the remainder of the net proceeds from the offering, along with cash received from existing option counterparties in connection with the partial unwind of the existing call spread transactions referred to below, to repay existing indebtedness.
Bloomfield, Connecticut-based Kaman Corporation conducts business in the aerospace and industrial distribution markets. The company produces and markets proprietary aircraft bearings and components; super precision, miniature ball bearings; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safe and arming solutions for missile and bomb systems for the US and allied militaries; subcontract helicopter work; restoration, modification and support of our SH-2G Super Seasprite maritime helicopters; manufacture and support of our K-MAX manned and unmanned medium-to-heavy lift helicopters; and engineering design, analysis and certification services.