American Seafoods postpones IDS deal citing 'adverse market conditions'

By Paul A. Harris

St. Louis, Aug. 12 - American Seafoods Group LLC of Seattle postponed its downsized $450 million (from $550 million) offering of Income Deposit Securities (IDS) "because of adverse market conditions," the company said in a news release Thursday.

"The company's registration statement on form S-1 has not been withdrawn and remains pending before the SEC," the news release stated. "The company intends to monitor market conditions."

"Although we remain confident in the strength of our business, the current market environment has proved disappointing," said American Seafoods chairman and chief executive officer Bernt O. Bodal, in the release. "We fully expect to be back in the market when conditions improve."

The company had proposed to sell 30,740,741 (decreased from 34,375,000) IDS comprised of shares of class A common stock at $13.50 to $14.00, (decreased from $16-$18) and $158.3 million (decreased from $177 million) of notes due 2019.

In addition the company also proposed to sell a separate offering of $27.9 million notes due 2019.

Both prospective issues of notes were rated B3 by Moody's Investor Services. Price talk was in the 12¼% area on both note offerings.

CIBC World Markets and Merrill Lynch & Co. were leading the deal.

In addition, American Seafoods Group and American Seafoods Finance Inc. announced Thursday that they were terminating a previously announced tender offer and consent solicitation for the outstanding 10 1/8% senior subordinated notes due 2010.

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