Spirit AeroSystems Announces Full Redemption of 3.950% Senior Notes due 2023

Rhea-AI Summary

Spirit AeroSystems Holdings, Inc. (NYSE: SPR) has announced its intention to redeem $300 million of its 3.950% Senior Notes due 2023 on November 23, 2022. The redemption price will be either 100% of the principal amount or based on an adjusted treasury rate plus twenty basis points, including accrued interest. This action is contingent upon Spirit completing an issuance of at least $800 million in senior notes by the same date. Notifications will be sent to all registered holders of the Notes.

Positive

• Intention to redeem $300 million in senior notes indicates financial strategy to manage debt.
• Contingent upon issuing $800 million in new senior notes, providing liquidity.

Negative

• Redemption of notes may indicate existing debt concerns or financial pressure.

WICHITA, Kan.--(BUSINESS WIRE)-- Spirit AeroSystems Holdings, Inc. [NYSE: SPR] (the “Company”) announced today that Spirit AeroSystems, Inc. (“Spirit”), a wholly owned subsidiary of the Company, has given a conditional notice of its intention to redeem in full the outstanding $300 million principal amount of its 3.950% Senior Notes due 2023 (CUSIP Number 85205T AJ9) (the “Notes”) on November 23, 2022 (the “Redemption Date”). The Notes will be redeemed at a redemption price equal to the greater of 100% of the principal amount of the Notes or a price based on the adjusted treasury rate plus twenty basis points, plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date. The redemption of the Notes is conditioned on the completion by Spirit of an issuance of at least $800 million aggregate principal amount of senior notes no later than the Redemption Date on terms and conditions satisfactory in all respects to Spirit in its sole and absolute discretion.

Spirit has instructed The Bank of New York Mellon Trust Company, N.A., as the trustee for the Notes, to distribute a notice of redemption to all registered holders of the Notes.

About Spirit AeroSystems Inc.

Spirit AeroSystems is one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company’s core products include fuselages, integrated wings and wing components, pylons, and nacelles. Also, Spirit serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco.

Forward-Looking Statements

This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "goal," "forecast," "intend," "may," "might," "objective," "outlook," "plan," "predict," "project," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, without limitation, the impact of the COVID-19 pandemic on our business and operations; the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to complete and integrate acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; demand for our products and services and the effect of economic or geopolitical conditions in the industries and markets in which we operate in the U.S. and globally; our ability to manage our liquidity, borrow additional funds or refinance debt; and other factors disclosed in our filings with the Securities and Exchange Commission. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221109006078/en/

Media:

Jessica Napoli

(316) 691-0252

jessica.napoli@spiritaero.com

Investor Relations:

(316) 523-7040

investorrelations@spiritaero.com

Source: Spirit AeroSystems Holdings, Inc.

FAQ

What is Spirit AeroSystems' plan for its senior notes due 2023?

Spirit AeroSystems intends to redeem $300 million of its 3.950% Senior Notes due 2023 on November 23, 2022.

What condition must Spirit AeroSystems meet to redeem its notes?

The redemption is conditional upon Spirit completing an issuance of at least $800 million in senior notes by the redemption date.

When will Spirit AeroSystems redeem its senior notes?

The redemption of the senior notes is scheduled for November 23, 2022.

What will be the redemption price for the senior notes?

The senior notes will be redeemed at the greater of 100% of the principal amount or based on an adjusted treasury rate plus twenty basis points, plus accrued interest.