By Paul A. Harris
Portland, Ore., July 17 – Viking Cruises Ltd. priced a $275 million add-on to its 8˝% senior notes due Oct. 15, 2022 (B3/B+) at 109.5 to yield 6.398% on Thursday, according to a syndicate source.
The reoffer price came at the rich end of the 109.25 to 109.5 price talk.
Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The Woodland Hills, Calif.-based river cruising company plans to use the proceeds to finance an investment of approximately $115 million in a Jones Act-compliant entity, and to finance a dividend of approximately $175 million which will be used by MISA Investments Ltd., the holding company of Viking Cruises, to fund the redemption of all of the outstanding Viking/MISA 8 5/8%/9 3/8% senior PIK toggle notes due 2018.
| Issuer: | Viking Cruises Ltd.
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| Face amount: | $275 million
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| Proceeds: | $301 million
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| Maturity: | Oct. 15, 2022
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| Security description: | Add-on to 8˝% senior notes due Oct. 15, 2022
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| Left bookrunner: | Wells Fargo Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC
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| Coupon: | 8˝%
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| Price: | 109.50
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| Yield: | 6.398%
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| Spread: | 534 bps
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| First call: | Oct. 15, 2017 at 104.25
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| Trade date: | July 17
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| Settlement date: | July 22 with accrued interest
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| Ratings: | Moody’s: B3
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| Standard & Poor’s: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 109.25 to 109.5
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| Marketing: | Quick to market
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| Original issue: | $250 million priced at par in October 2012
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| Fungibility: | Add-on notes will be immediately fungible with the original notes
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| Total issue size: | $525 million
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