SeaWorld launches downsized $725 million eight-year notes at 5¼%; pricing Friday

By Paul A. Harris

Portland, Ore., Aug. 13 – SeaWorld Entertainment, Inc. downsized its offering of eight-year senior notes (Caa1/B-) to $725 million from $825 million and launched the deal at 5¼%, according to market sources.

The deal is set to price on Friday.

Initial guidance was in the low-to-mid 5% area.

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

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon.

The issuing entity is SeaWorld Parks & Entertainment, Inc., a wholly owned subsidiary of SeaWorld Entertainment.

With the downsizing of the bonds SeaWorld upsized its term loan to $1.2 billion from $1.1 billion.

The Orlando, Fla.-based theme park and entertainment company plans to use the proceeds plus cash on hand and the term loan to redeem up to $450 million of its 9½% second-priority senior secured notes due 2025 and refinance its existing term loan and revolver.

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