Viking Cruises talks $250 million 10-year notes at 8¾% area yield

By Paul A. Harris

Portland, Ore., Oct. 11 - Viking Cruises, Ltd. talked a $250 million offering of 10-year senior notes (B3/B+) to yield in the 8¾% area, an informed source said on Thursday.

The books close at noon ET on Friday, and the deal is set to price after that.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes come with five years of call protection.

Of the proceeds, $100 million will be used for acquisition costs related to river vessels to be built, $50 million to finance the acquisition of ships, vessels, and other assets, and start-up costs at subsidiary Viking Ocean Cruises Ltd., up to $50 million to purchase shares and options to acquire shares of Viking River Cruises Ltd., and $20 million to fund a dividend to MISA Investments, the parent. The remainder will be used for general corporate purposes.

The issuer is Woodland Hills, Calif.-based river cruising company.

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