Lindblad Expeditions driving by with $275 million five-year notes; initial talk 9% area

By Paul A. Harris

Portland, Ore., April 17 – Lindblad Expeditions Holdings, Inc. plans to price a $275 million offering of five-year senior secured notes (B3/B) in a Monday drive-by, according to market sources.

Initial talk has the notes coming to yield in the 9% area, according to a bond trader.

The notes become callable in two years at par plus 50% of the coupon. They feature an equity clawback at par plus 50% of the coupon and have a 101% poison put.

Citigroup Global Markets Inc. is the left lead physical bookrunner. J.P. Morgan Securities LLC is the joint physical bookrunner.

The notes are secured by a perfected first-priority lien on National Geographic Endurance, National Geographic Resolution and related assets, subject to customary exceptions, and on the capital stock of the subsidiaries.

The covenant package is substantially similar to that of the company's 6¾% senior secured notes due 2027.

The New York-based provider of expedition cruises and adventure travel experiences plans to use the proceeds to refinance its export credit agreements, as well as for working capital and for general corporate purposes, which may include strategic growth initiatives.

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