By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – Viking Cruises Ltd. priced $950 million of high-yield notes in two parts, according to a press release late Monday evening.
The company priced $675 million of new 10-year 5% senior secured notes (Ba2/BB-), which have five years of call protection.
Viking also priced a $275 million add-on to the 5 7/8% senior unsecured notes due Sept. 15, 2027 (B3/B). The 5 7/8% notes have a make-whole call at Treasuries plus 50 basis points until Sept. 15, 2022, then become callable at 102.938. The original $550 million issue priced at par on Sept. 13, 2017.
The company plans to use proceeds of the secured notes to prepay all outstanding amounts under the loan agreements used to finance two ocean newbuildings, the Viking Star and the Viking Sky, and to repurchase another ocean newbuilding, the Viking Sea, and discharge the related sale-leaseback financial agreement. Viking intends to use the net proceeds of the add-on notes for general corporate purposes.
BofA Merrill Lynch, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC managed the sale.
The Los Angeles-based cruise line plans to use the proceeds to repay debt.
| Issuer: | Viking Cruises Ltd.
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| Amount: | $975 million
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| Pricing date: | Jan. 29
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| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC
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|
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| 2028 notes
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| Issue: | Senior secured notes
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| Amount: | $675 million
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| Maturity: | 2028
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| Coupon: | 5%
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| Call: | Callable after five years
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| Ratings: | Moody's: Ba2
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| S&P: BB-
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|
|
| 2027 add-on
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| Issue: | Senior unsecured notes
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| Amount: | $275 million add-on to $550 million issued Sept. 20
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| Maturity: | Sept. 15, 2027
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| Coupon: | 5 7/8%
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| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2022, then callable at 102.938
|
| Equity clawback: | 40% at 105.875 until Sept. 15, 2020
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| Ratings: | Moody's: B3
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| S&P: B
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