By Paul A. Harris
Portland, Ore., Jan. 30 – Viking Cruises Ltd. priced $950 million of high-yield notes in two parts on Monday, according to a syndicate source.
The company priced $675 million of new 10-year senior secured notes (Ba2/BB-) at par to yield 5%.
Viking also priced a $275 million add-on to the 5 7/8% senior unsecured notes due Sept. 15, 2027 (B3/B) at 100.5, with a 5.805% yield to maturity and a 5.791% yield to worst.
The company plans to use the proceeds of the secured notes to prepay all outstanding amounts under the loan agreements used to finance two ocean newbuildings, the Viking Star and the Viking Sky, and to repurchase another ocean newbuilding, the Viking Sea, and discharge the related sale-leaseback financial agreement. Viking intends to use the net proceeds of the add-on notes for general corporate purposes.
BofA Merrill Lynch was the left bookrunner. Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
| Company: | Viking Cruises Ltd.
|
| Amount: | $950 million
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
|
| Trade date: | Jan. 29
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Issuer: | VOC Escrow Ltd.
|
| Amount: | $675 million
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 231 bps
|
| First call date: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2023, then callable at a premium
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
|
|
| Senior unsecured notes
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| Issuer: | Viking Cruises Ltd.
|
| Amount: | $275 million
|
| Maturity: | Sept. 15, 2027
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| Security description: | Add-on to 5 7/8% senior notes due Sept. 15, 2027
|
| Coupon: | 5 7/8%
|
| Price: | 100.5
|
| Yield to worst: | 5.791%
|
| Yield to maturity: | 5.805%
|
| Spread: | 301 bps
|
| First call date: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2022, then callable at a premium
|
| Settlement date: | Feb. 5 with accrued interest
|
| Ratings: | Moody's: B3
|
| S&P: B
|
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