New Issue: Aker Kvaerner upsized €260 million seven-year notes yield 8 3/8%

By Paul A. Harris

St. Louis, March 19 - Aker Kvaerner priced an upsized issue of €260 million of seven-year senior second priority lien notes (B2//BB) Friday at par to yield 8 3/8%, according to a market source.

Price talk was 8¼% to 8½%.

JP Morgan, Barclays Capital, Nordea and SG Cowen were the underwriters of the Rule 144A/Regulation S issue, which has no registration rights.

Proceeds will be used to repay subordinated notes and to finance a reorganization.

The issuer is a Lysaker, Norway, oil and gas engineering and construction services company.

The issue was upsized from €250 million.

Issuer:	Aker Kvaerner
Amount:	€260 million, increased from €250 million
Maturity:	June 15, 2011
Security description:	Senior second priority lien notes
Underwriters:	JP Morgan, Barclays, Nordea, SG Cowen
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	493 basis points
Call feature:	Callable after June 15, 2007 at 108.375, 104.88, 102.094, par on or after June 15, 2010
Equity clawback:	Until June 15, 2007 for 35% at 108.375
Pricing date:	March 19
Settlement date:	March 26
Ratings:	Moody's: B2
	Fitch: BB
Price talk:	8¼%-8½%

© 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.