By Paul Deckelman
New York, Nov. 6 - General Maritime Corp. priced a restructured 300 million offering of eight-year senior unsecured notes (B3/B) on Friday, high yield syndicate sources said. The notes, carrying a 12% coupon and maturing on Nov. 15, 2017, priced at 97.512 to yield 12½%.
The Rule 144A/Regulation S offering, which was sold with registration rights, came to market after having been tweaked a little to make it more attractive to potential investors; an informed source told Prospect News that an extra year of call protection had been added at mid-week, increasing the non-call period (other than for a make-whole call at 50 basis points over Treasuries) to four years from the originally proposed three years.
The bonds' indenture contains the standard three-year equity clawback provision, as well as a change-of-control put at 101% of the principal plus accrued interest.
J.P. Morgan Securities Inc. and Goldman Sachs & Co. were the joint bookruners on the deal, with Citigroup Global Markets Inc., Credit Suisse, DnB NOR, Jefferies & Co, RBS Securities Inc. and UBS Securities LLC as co-managers.
The company - a New York-based provider of international seaborne crude oil transportation services - plans to use the net proceeds of $285 million to repay outstanding borrowings under its bank credit facilities and for other general corporate purposes.
Issuer: General Maritime Corp.
| Issue: | Senior unsecured notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2017
|
| Coupon: | 12%
|
| Price: | 97.512
|
| Yield: | 12 ½%
|
| Spread: | 922 basis points
|
| Call protection: | Make-whole call at T+50 bps until Nov. 15, 2013; then at 106 until Nov. 15, 2014; then at 103 until Nov. 15, 2015; then at par.
|
| Equity clawback: | Until Nov. 15, 2012, for up to 35% of issue at 112%. |
|
| Bookrunners: | J.P. Morgan Securities Inc. and Goldman Sachs & Co.
|
| Co-Managers: | Citigroup Global Markets Inc., Credit Suisse, DnB NOR, Jefferies & Co, RBS Securities Inc. and UBS Securities LLC
|
| Distribution: | Rule 144A/ Regulation S, with registration rights
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
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