NCL, Almatis deals price; Denny's up on equity placement news, Amkor off

By Paul Deckelman

New York, July 9 - NCL Corp. Ltd. was heard by high yield market sources to have priced an upsized offering of 10-year notes Friday while Almatis Holding BV successfully brought a euro-denominated offering to market. Meantime, full terms emerged on Star Gas Partners LP's late-Thursday add-on deal and GulfMark Offshore Inc. got ready to hit the road with an offering of 10-year notes.

In the secondary market, the new NCL bonds were heard to have traded up smartly to 102 or 102.5 after having been freed for aftermarket dealings. Back among the already established issues, Denny's Corp. bonds were on the menu of many investors after the Spartanburg, S.C.-based restaurant chain operator completed a $92 million equity placement, with proceeds slated for debt reduction. On the downside, Amkor Technology Inc. notes were seen a couple of points lower, although there was no immediate bad news out on the high-tech manufacturer.

NCL - a unit of Kuala Lumpur, Malaysia-based international cruise line operator Star Cruises Ltd. - sailed into port Friday with an upsized $250 million offering of senior unsecured notes due 2014. The offering had been increased from the $200 million originally shopped around.

The notes priced at par to yield 10 5/8%. J.P. Morgan was the bookrunner on the deal.

Proceeds are to be used for debt repayment and general corporate purposes, which could potentially include construction of new ships. Star/NCL is the world's third-largest cruise line operator, after Carnival Corp. and Royal Caribbean Cruises Ltd.

NCL had previously attempted a $350 million bond offering in May but abandoned the effort after worries about rising interest rates caused a panic in emerging markets, forcing many issuers to delay or abandon deals.

Another maritime name making news Friday in the new-deal market was GulfMark Offshore. The Houston-based provider of marine transportation services to the energy industry is expected to price its previously announced $155 million offering of 10-year senior notes around mid-week following a short roadshow, high-yield syndicate sources said. The roadshow is slated to run from Monday through Wednesday, with pricing expected shortly afterward.

Bookrunning manager Lehman Brothers is piloting the deal.

GulfMark is expected to use most of the proceeds to fund its pending tender offer and related consent solicitation for its $130 million of outstanding 8¾% senior notes due 2008, which is scheduled to expire on July 30.

Stamford, Conn.-based energy operator Star Gas Partners was heard by syndicate sources to have sold its $30 million face amount add-on issue of 10¾% senior notes due Feb. 15, 2013 at a sizable premium to par - 106.25 - to generate some $31.875 million of proceeds, which will be used to repay credit facility borrowings.

The deal was brought to market by Wachovia Securities, which jointly ran the books with J.P. Morgan on the company's original placement of $200 million of the notes back in February 2003 and which was sole bookrunner when it did an initial $35 million add-on deal earlier this year - although that one achieved an even better price of 110.5.

Almatis prices euro deal

Word crossed the Atlantic that German specialty chemicals manufacturer Almatis Holding BV had priced a €150 million offering of eight-year senior notes. The notes priced at par to yield 9%, at the tight end of pre-deal market price talk of a yield in the 9% to 9½% vicinity.

After a short roadshow, the deal came to market Friday via joint bookrunning managers JP Morgan Securities and ING.

The company plans to use the new-deal proceeds to repay bank debt, mezzanine debt, a shareholder loan and preferred stock.

Talk on two more German deals

Price talk also emerged Friday on upcoming deals for two other German companies.

A market source said that Heckler & Koch GmBH's €115 senior secured notes due 2011 could price as early as Monday, which he said was "a little bit earlier than expected." Talk puts the yield in the 9¼% to 9½% neighborhood.

The defense contractor's deal is being book-managed by Citigroup.

And Gildemeister AG's planned €175 million offering of seven-year senior subordinated notes are seen likely to price early in the week, at a yield around the 9¾% area, a market source said.

The machine tool maker's offering is being led by two German banks, Bayerische Hypo and Westdeutsche Landesbank.

Loews close to launching $415 million

Back in the States, the curtain may officially rise Monday or Tuesday on a new $415 million offering of 10-year senior subordinated notes due 2014 that Loews Cineplex will sell as part of the financing for the planned buyout of the New York-based cinema operator.

Standard & Poor's gave a CCC+ rating to the prospective deal and a B rating to the $720 million bank debt portion of the financing.

However, even with the rating, a well-connected source flatly declared "there was no new deal announcement [Friday]" - but suggested that word could be forthcoming Monday and Tuesday. Goldman Sachs, Citigroup, Credit Suisse First Boston and Merrill Lynch are expected to bring the deal to market.

NCL gains in trading

In the secondary arena, "to say things were dead is an understatement - and the whole week was like that," a trader said morosely.

But there was some activity going on in the new NCL 10 5/8% notes. The trader said he had seen the new bonds offered at 102.5, although he had not seen a bid side.

At another desk, however, a trader said that the bonds had gone home around the 102 bid, 102.5 offered level, after having priced earlier in the session at par.

Denny's better

Back among the established bonds, Denny's 11¼% notes due 2008 were being quoted as high as 102.25 bid, 103 offered, up from 101.5 bid, 102.5 offered on Thursday. A trader saw those bonds having gradually risen to their Thursday levels over several sessions, "about half a point to a point each day," from recent levels in the 97 area.

Denny's bonds got a boost after the restaurant operator announced earlier in the week that it had sold $92 million of stock - and that the proceeds from the private placement will be used to reduce indebtedness and for general corporate purposes.

The company said it may initially reduce debt by repaying a portion of amounts outstanding under its credit facility, as well as prepaying or acquiring a portion of either the 111/4s or the company's 12¾% senior notes due 2007.

Moody's investors service announced it was upgrading the 2007 notes a notch to Caa1 and the 2008 notes also a notch to Caa3.

Amkor, Unisys decline

On the downside, several high-tech names were on the slide, with Amkor's 9¼% notes due 2008 seen down nearly two points at 97.5 bid. Its 7¾% notes due 2013 were down a similar amount, to 87.5. There was no negative news seen out on the West Chester, Pa.-based semiconductor testing and equipment company.

There was negative news, however, on Unisys Corp., which warned that it would have lower-than expected earnings and revenues in the second quarter, due to unexpected deferrals of certain enterprise server contracts.

The Blue Bell. Pa.-based technology company now expects per-share earnings of 10 to 11 cents, excluding pension-related items - down from its prior forecasts of 14 to 17 cents - and said that instead of growing at a single-digit percentage rate the company's revenues would be down 3% in the quarter.

Unisys bonds were "probably down a point," a trader said, quoting its 6 7/8% notes due 2014 as having eased to 103 bid, 104 offered.

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