By Paul A. Harris
Portland, Ore., June 26 – Viking Cruises Ltd. priced a $720 million issue of eight-year senior notes (Caa1/B-) at par to yield 9 1/8% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 9¼% area.
That talk was wide of an early whisper which had the deal coming to yield 9% or tighter, a sellside source recounted, adding that at 9% bookbuilding was ultra-sluggish.
With the additional yield the bonds ended up playing to orders amounting to 2.5-times deal-size, the sellsider added.
However, there was still some carping about the yield, on the part of some investors, according to the sellsider who added that some people who played the deal were highly confident that the bonds will be redeemed the minute call protection expires.
Wells Fargo Securities, LLC was the left bookrunner.
The Basel, Switzerland-based cruise line plans to use the proceeds plus balance sheet cash to redeem and discharge its 13% senior secured notes due 2025.
| Issuer: | Viking Cruises Ltd.
|
| Amount: | $720 million
|
| Issue: | Senior notes
|
| Maturity: | July 15, 2031
|
| Joint bookrunners: | Wells Fargo Securities, LLC (left), BofA Securities, Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, BNP Paribas Securities Corp.
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | Treasuries plus 539 bps
|
| First call: | July 15, 2026 at 104.563
|
| Trade date: | June 26
|
| Settlement date: | June 30
|
| Ratings: | Moody’s: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Yield in 9¼% area
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
