Spirit AeroSystems, which designs and builds aerostructures, has raised $500 million in a new private notes offering of 5.500% senior secured first lien notes due 2025. The offering was increased to $500 million from the previously announced size of $400 million. Spirit plans to use the net proceeds from the offering for general corporate purposes.
In an operational update, Spirit AeroSystems has warned of the continuing material negative impact of the COVID-19 pandemic on its business since lockdown measures have forced Airbus and Boeing to reduce production rates and have collapsed the aviation industry. The continued grounding of the MAX has also continued to impact the business. Spirit AeroSystems has warned that the acquisition of Bombardier may not close by the end date. And even though the company says that it believes it has complied with its covenants and agreements under the Bombardier Purchase Agreement, it warns that if the deal cannot close by the end date the sellers may commence legal action.