By Reshmi Basu
New York, June 28 - Government-owned Air Jamaica Ltd. sold an upsized offering of $200 million in 10-year notes (expected B1/B) at par to yield 9 3/8%, according to a market source.
The deal, increased from $150 million, came at the tight end of price talk. Talk had been set in the area of 9½%.
The amortizing notes are non-callable for life. They will feature a make-whole call at Treasuries plus 100 basis points and will carry an average life of about 6.75 years.
The government of Jamaica will guarantee the notes.
Bear Stearns was the bookrunner for the Rule 144A/Regulation S transaction for the Kingston-based airline.
| Issuer: | Air Jamaica Ltd.
|
| Guarantor: | Government of Jamaica
|
| Amount: | $200 million
|
| Issue: | Amortizing notes
|
| Maturity: | July 8, 2015
|
| Coupon: | 9 3/8%
|
| Issue price: | Par
|
| Yield: | 9 3/8%
|
| Call option: | Make-whole call at Treasuries plus 100 basis points
|
| Average life: | 6.75 years
|
| Pricing date: | June 28
|
| Settlement date: | July 8
|
| Bookrunner: | Bear Stearns
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B (expected)
|
| Price talk: | 9½% area
|
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