Diamond Resorts cancels offering of $525 million six-year notes

By Wendy Van Sickle

Columbus, Ohio, July 24 – Diamond Resorts International Inc. canceled its $525 million offering of six-year senior secured notes (B3/B-), according to a news release on Friday.

The deal had been expected to price on Wednesday but was pushed back.

“As a result of changing market conditions, the contemplated financing was uneconomic relative to our current notes so we chose to terminate the contemplated financing,” Mike Flaskey, chief executive officer of Diamond, said in the news release.

“We continue to believe the company has sufficient liquidity and a manageable capital structure to weather our current environment and look forward to serving our current and future owners at our industry leading collection of vacation destinations around the world.”

The latest talk had the notes pricing with a 9¾% coupon at 98.889 to yield 10%. The new talk pushes the yield 50 basis points up from the midpoint of earlier official yield talk in the 9½% area, which was also the initial guidance.

Left lead bookrunner was RBC Capital Markets LLC. Barclays was a joint bookrunner. Apollo and Natixis Securities Americas LLC are co-managers.

The Rule 144A and Regulation S for life notes come with two years of call protection.

The Las Vegas-based timeshare company planned to use the proceeds to repay a portion of its 7¾% first-lien secured notes and a portion of its term loan B, both due September 2023, and to fund cash to its balance sheet. The tender offer has been canceled.

© 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.