Excel Maritime postpones $250 million offering of eight-year notes

By Paul A. Harris

Portland, Ore., Jan. 28 - Excel Maritime Carriers Ltd. postponed its $250 million offering of eight-year senior notes (Caa1/B-/), according to a Friday press release from the company.

"Due to the current market conditions, compounded by the recent announcement that Korea Line Corp. filed for receivership, the proposed offering has become less attractive than originally anticipated as a capital raising opportunity for the company," the release stated.

"The company considered the proposed offering as an opportunistic approach to take advantage of the debt capital markets by raising long-term unsecured commitments at favorable terms," Excel Maritime added.

"The company will seek to continue its deleveraging strategy by applying its cash generation to pay down debt and strengthen its balance sheet and overall liquidity position while employing a balanced chartering strategy."

Price talk on the deal had been set at a 9½% yield early in the Jan. 24 week.

However, talk was subsequently pushed higher by as much as 100 basis points, according to a buyside source.

Deutsche Bank Securities and Citigroup were leading the deal.

Proceeds were to have been used to repay about $240 million of revolving credit facility debt and for general corporate purposes.

Excel is an Athens, Greece-based owner and operator of dry bulk carriers and a provider of seaborne transportation services for dry bulk cargoes.

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