GenCorp Inc. said Monday that it intends to sell $460 million in notes due in 2021.
The private debt placement is subject to market and other conditions. Notes are being offered only to qualified institutional buyers.
GenCorp intends to use the proceeds to fund, in part, its ongoing acquisition of United Technologies Corp.'s Pratt & Whitney Rocketdyne business. The local company also said it intends to pay related fees and expenses.
GenCorp, parent of Rancho Cordova rocket-maker Aerojet, announced last July that it was buying rival rocket-engine maker Rocketdyne in a $550 million deal that will nearly double GenCorp's business. The Federal Trade Commission is overseeing the proposed acquisition.
Note proceeds will be deposited into escrow pending the completion of the proposed acquisition, subject to certain conditions if the acquisition is not completed by July 21.