CP Ships $250 million 10-year notes talked at 10% area, pricing Thursday

By Paul A. Harris

St. Louis, Mo., June 25 - Price talk of a yield in the 10% area emerged Tuesday on CP Ships Ltd.'s upcoming sale of $250 million of 10-year senior notes (Ba3/BB+), according to a syndicate source. The deal is expected to price Thursday morning.

Salomon Smith Barney and Morgan Stanley are joint bookrunners.

The Rule 144A notes are non-callable for five years.

The deal is coming concurrently with a $100 million common stock offering.

Proceeds will be used to fund the acquisition of Italia di Navigazione, to purchase four ice-strengthened ships and to repay $175 million of its revolver.

The issuer is a London-based container ship company.

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