Stena launches upsized $700 million seven-year secured notes at 7¼%; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 9 – Stena International upsized its offering of seven-year senior secured notes (Ba2/BB+) to $700 million from $400 million and launched the notes at 7¼% on Tuesday morning, according to market sources.

The launch comes at the tight end of the 7¼% to 7½% price talk. Initial guidance was in the 7¾% area.

The deal is set to price later on Tuesday.

Stena came back in the new year with its bond deal after conducting a non-deal roadshow last September, following which the company declined to make an offering.

The Rule 144A and Regulation S notes are subject to an initial call after three years at par plus 50% of the coupon.

JPMorgan is leading the notes sale.

The Gothenburg, Sweden-based maritime shipping conglomerate plans to use the proceeds plus cash on hand to repay $350 million of its 6 1/8% senior secured notes due 2025 and a portion of its €315 million of 3¾% senior secured notes due 2025.

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