Published on 7/14/2004 in the Prospect News High Yield Daily.
New Issue: GulfMark prices upsized 10-year deal at discount to yield 7.813%
By Paul Deckelman
New York, July 14 - GulfMark Offshore Inc. (B2/BB-) priced an upsized $160 million offering of new 7¾% senior notes due 2014 at 99.575, to yield 7.813%, according to syndicate sources.
The deal was slightly increased in size from the originally announced $155 million.
The Rule 144A/Regulation S offering was brought to market following a short roadshow that began on Monday, via bookrunner Lehman Brothers, with Jefferies & Co. and Morgan Stanley Dean Witter as co-managers.
The notes are subject to a make-whole call for the first five years after issue, and will be callable after that at a typical premium schedule.
GulfMark, a Houston-based provider of marine transportation services to the energy industry, is expected to use most of the proceeds of the offering to fund its pending tender offer and related consent solicitation for any and all of its $130 million of outstanding 8¾% senior notes due 2008, which is scheduled to expire on July 30, subject to possible extension. New-deal proceeds are also slated to be used to repay bank borrowings and for general corporate purposes.
Issuer: Gulfmark Offshore Inc.
| Amount: | $160 million (upsized from original $155 million)
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| Security type: | Senior notes
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| Maturity: | July 15, 2014
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| Bookrunner: | Lehman Brothers
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| Co-managers: | Jefferies & Co., Morgan Stanley Dean Witter
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| Coupon: | 7¾%
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| Price: | 99.575
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| Yield: | 7.813%
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| Spread: | 333 basis points
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| Call: | Make-whole at T+ 50 bps for first five years, then callable at 103.875 from July 15, 2009, at 102.583 from July 15, 2010, at 101.292 from July 15, 2011, and finally at par from July 15, 2012.
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| Equity clawback: | For up to 35% of issue at 107.75 until July 15, 2007
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| Ratings: | Moody's: B2
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| S&P: BB-
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| Settlement: | July 21 (T+5) flat
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| Use of proceeds: | Fund 8¾% notes due 2008 tender offer, repay bank debt, general corporate purposes |
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