DOW JONES NEWSWIRES
Goodrich Corp. (GR) plans to redeem $257.5 million in
outstanding 7.625% notes due 2012 with proceeds from a recent bond
offering.
Costs and fees associated with the redemption are expected to be
about 20 cents a share, which the aerospace-parts supplier will
recognize in the fourth quarter.
Goodrich plans to adjust its 2010 guidance to include the
redemption's impact when it releases third-quarter results Oct.
21.
The company Wednesday priced $600 million--$100 million more
than expected--in senior unsecured notes due 2021. The rest of the
proceeds will go to its pension plans.
A host of corporations are selling longer-dated debt, generally
at lower interest rates, to deal with near-term borrowings. Rates
are near record lows, causing a rush of companies looking to tap
the credit markets and investor demand for such securities.
The redemption date for the 2012 notes is Oct. 12. The price
will be the greater of either 100% of the principal amount or the
total of the present values of the remaining scheduled payments of
principal and interest discounted to the redemption date plus 45
basis points plus accrued and unpaid interest.
In July, Goodrich reported its second-quarter profit declined
10% following a prior-year gain as revenue rose slightly and the
margin widened.
The company has suffered from low demand for new and replacement
parts, but recovery may be in sight as Boeing Co. (BA) and Airbus
have increased production of some planes and most airlines are
returning to profitability.
Goodrich's shares were at $71.93, up 2.7%, in after-hours
trading. The stock was up 9% this year as of the close of
Thursday's session.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com