SeaWorld driving by with $400 million five-year secured notes; initial talk 10¼% area

By Paul A. Harris

Portland, Ore., July 29 – SeaWorld Entertainment, Inc. plans to price a $400 million offering of five-year second-priority senior secured notes (Caa2/CCC) in a Wednesday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial price talk has the Rule 144A and Regulation S for life deal coming to yield in the 10¼% area, a trader said.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Citizens Capital Markets Inc. and Fifth Third Securities Inc. are the joint bookrunners.

The notes come with 1.5 years of call protection and feature a special call provision which allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The issuing entity will be SeaWorld Parks & Entertainment, Inc., a direct, wholly owned subsidiary of SeaWorld Entertainment.

The Orlando-based theme park chain intends to use the proceeds to repay debt under its revolver, for working capital and for other general corporate purposes, and to pay fees and expenses related to the notes offering and related transactions, including an amendment to the credit agreement governing SeaWorld Entertainment's existing senior secured credit facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.