By Reshmi Basu
New York, June 25 - Malaysia International Shipping Corp. priced an upsized $1.1 billion of senior unsecured notes (Baa1/BBB+) in two tranches, according to a market source.
The bond offering comprises $400 million five-year notes and $700 million 10-year notes.
The five-year notes priced to yield Treasuries plus 120 basis points. The five-year notes came tighter than the 125 to 135 basis points guidance.
The 10-year notes priced to yield Treasuries plus 155 basis points. The notes came in line with guidance of 150 to 165 basis points.
The deal was announced at $1 billion in size.
Proceeds will be used to refinance an $800 million bridge loan maturing in June.
Barclays Capital and Citigroup ran the books for the Rule 144A/Regulation S bond offering.
Petroleum Nasional Bhd (Petronas) owns 62.44% of the Kuala Lumpur-based international shipping line.
Issuer: Malaysia International Shipping Corp.
| Pricing date: | June 25
|
| Settlement date: | July 2
|
| Bookrunners: | Barclays Capital, Citigroup
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| First tranche:
|
| Amount: | $400 million
|
| Issue: | Senior unsecured notes
|
| Maturity: | July 1, 2009
|
| Coupon: | 5%
|
| Issue price: | 99.834
|
| Yield: | 5.038%
|
| Spread: | Treasuries plus 120 basis points
|
| Price guidance: | Treasuries plus 125 to 135 basis points |
|
|
|
| Second tranche
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| Amount: | $700 million
|
| Issue: | Senior unsecured notes
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| Maturity: | July 1, 2014
|
| Coupon: | 6.125%
|
| Issue price: | 99.506
|
| Yield: | 6.192%
|
| Spread: | Treasuries plus 155 basis points
|
| Price guidance: | Treasuries plus 150 to 165 basis points
|
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