Viking marketing $700 million notes in secured, unsecured tranches; pricing expected Thursday

By Paul A. Harris

Portland, Ore., Jan. 27 – Viking Cruises was scheduled to start shopping a $700 million two-part offering of eight-year notes on a late Wednesday morning conference call with investors, according to market sources.

The deal comes in secured and unsecured tranches via two separate entities.

Viking Cruises Ltd. is offering $350 million of senior unsecured notes (Caa2/CCC), with proceeds to be used for general corporate purposes; initial guidance is in the mid-7% area.

Viking Ocean Cruises Ship VII Ltd. is offering $350 million of secured notes (B2/B-), the proceeds from which will be used to pay the remaining contract price of approximately €285 million for the Viking Venus; initial guidance is in the low-6% area.

The Rule 144A and Regulation S for life deal is expected to price on Thursday.

Wells Fargo Securities LLC is the left bookrunner. BofA Securities Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the joint bookrunners.

The notes in both tranches become callable after three years at par plus the respective coupons.

Viking is a Los Angeles-based cruise line.

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