By Paul Deckelman
New York, March 24 - Overseas Shipholding Group, Inc. priced $300 million eight-year senior notes on Wednesday to yield 8 3/8%.
The bonds came right in the middle of pre-deal price talk projecting a yield between 8¼% and 8½%, high yield syndicate sources said.
The 8 1/8% coupon bonds priced at 98.563. The deal priced too late for aftermarket activity.
The bonds priced after a short roadshow that began on Monday, when the deal was announced.
The bonds will be subject to a make-whole call at any time after issue and will carry a change-of-control put provision for redemption at 101% of principal.
Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and HSBC Securities (USA) Inc. were bookrunners for the public offering, with Deutsche Bank Securities Inc., DNB NOR Markets, Goldman Sachs & Co. and ING as co-managers.
Overseas Shipholding, a New York-based bulk shipping company which primarily transports crude oil and petroleum products, plans to use the deal proceeds to reduce its unsecured revolving credit facility debt.
| Issuer: | Overseas Shipholding Group Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | March 30, 2018
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and HSBC Securities (USA) Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., DNB NOR Markets, Goldman Sachs & Co. and
|
| ING
|
| Coupon: | 8 1/8%
|
| Price: | 98.563
|
| Yield: | 8 3/8%
|
| Spread: | 495 basis points
|
| Call features: | Make-whole call at T+50 bps
|
| Equity clawback: | For up to 35% of issue at 108.125% until March 30, 2013
|
| Change of control: | Put at 101% of principal plus accrued interest
|
| Trade date: | March 24 |
|
| Settlement date: | March 29
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Registered
|
| Price talk: | 8¼% to 8½% yield
|
| Marketing: | Roadshow March 22-24
|
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