Meggitt completes $600m private placing

Aerospace engineer Meggitt said it had completed a private placement of $600m seven and 10 year senior notes with 23 US-based investors.

The transaction has a weighted average maturity of 8.5 years, and an all-in funding cost of 3.46%. Funds will be received on 6 July 2016.

Net proceeds will be used to refinance the bilateral credit facilities secured in 2015.

Chief financial officer Doug Webb said the issue enables Meggitt to capitalise on current low interest rates and its strong market rating to secure low cost longer term funding while at the same time further diversifying its debt investor base.

“This is consistent with our commitment to maintaining a strong balance sheet to support our investment plans," he said.