Morning Commentary: Norwegian Cruise Line launches a new deal; Colony Capital also on tap

By Rebecca Melvin

New York, July 16 – Norwegian Cruise Line Holdings Ltd. launched a $250 million offering of five-year exchangeable notes early Thursday that were seen worth 107.76 at the midpoint of price talk, assuming a credit spread of 1,700 basis points over Libor and a 45% vol., according to a market source.

The cruise line deal was being talked at a coupon of 5.75% to 6.25% and an initial exchange premium of 20% to 25%.

The deal was expected to price after the market close, and is being sold concurrently with a $250 million secondary offering of 13.5 million shares and $675 million of senior secured straight notes due 2026.

Colony Capital Inc. was also expected to price after the market close on Thursday. The real estate investment trust launched the $200 million deal of five-year exchangeable senior notes late Wednesday and it was being talked with a 6.25% to 6.75% yield and a 20% to 25% initial exchange premium.

It has a $30 million greenshoe. The Los-Angeles-based REIT plans to use the proceeds of the notes to redeem its 3.875% convertible senior notes due 2021 prior to maturity or to repay the 2021 notes at maturity with any remaining proceeds for general corporate purposes.

Internationally, Sosei Group Corp. announced that it priced ¥16 billion of five-year convertible bonds with a 0.5% coupon and a 15% initial exchange premium, according to a company release.

The company concurrently priced a ¥5.06 billion issue of shares, or 3,301,400 shares at ¥1,595 per share.

The biopharmaceutical group, based in Tokyo with research facilities in Cambridge, England, intends to use proceeds to fund strategic growth initiatives including an acquisition, investments in novel technologies, expansion of its drug candidate discovery and early development into new target classes, and in licensing late-stage clinical assets to develop for the Japanese market.

© 2015 Prospect News.
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