Why Shares in Spirit AeroSystems Are Surging This Week
Shares in aerostructure manufacturer Spirit AeroSystems (NYSE: SPR) soared by 22% in the week to Thursday afternoon. Shareholders in the company received two pieces of positive news in the week.
The second is easily understood because it impacted most of the market on Thursday. Softer-than-expected inflation raised hopes that interest rates wouldn't have to rise as much as the market previously feared -- something likely to encourage investors to be more optimistic about the growth outlook. That's a good thing for an aerospace supplier because it implies increased demand for travel and, ultimately, airplanes, and it also implies it will be easier to raise debt.
The last point leads to the week's first piece of positive news -- namely, the announcement of a debt-refinancing plan involving a private offering of $800 million in senior secured notes due in 2029. The proceeds of the private offering are intended to redeem outstanding notes due in 2023 and to fund a tender offer for its $500 million in 5.5% notes due in 2025.
Source Fool.com
