Bloomberg News

Hawker Beechcraft Bonds Drop as Jet Maker’s Cash Supply Dwindles

December 12, 2011

Dec. 12 (Bloomberg) -- Bonds issued by Hawker Beechcraft Corp., the jet maker part-owned by Goldman Sachs Group Inc., dropped, approaching a record low.

The company’s $182.9 million of 8.5 percent notes due in April 2015 fell 0.8 cent to 18.5 cents on the dollar at 10:28 a.m. in New York, the lowest in more than two years, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bonds traded for as much as 60.3 cents in August.

Hawker Beechcraft’s bonds are declining as the plane maker’s cash supply dwindles amid falling demand for private aircraft. Standard & Poor’s cut its credit rating to CCC on Dec. 1, saying the company may attempt a distressed debt restructuring. Hawker Beechcraft’s cash dropped to $147 million on Sept. 30, down from $422.8 million at the end of 2010, Bloomberg data show.

Goldman Sachs Capital Partners, the fifth-biggest U.S. bank’s private-equity arm, and Onex Corp. bought the company in 2007 for about $3.3 billion, giving the bank and Canada’s largest buyout firm 49 percent equal stakes.

The 8.5 percent notes traded for 16.9 cents, the lowest price since their issuance, on Feb. 9, 2009, Trace data show.

--Editors: John Parry, Pierre Paulden

To contact the reporter on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net.


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