Venoco, Viking Cruises Said to Plan $400 Million of PIK Bonds
Venoco Inc. and Viking Cruises Ltd. are offering a total of $400 million of bonds in separate transactions that allow them to pay interest with extra debt.
Oil- and gas-exploration company Venoco may issue $250 million of so-called payment-in-kind toggle notes due 2018 through its Denver Parent Corp., according to a person with knowledge of the transaction who asked not to be identified because terms aren’t set.
Proceeds will be used to redeem debt and fund a tender offer for the Denver-based company’s $150 million of 11.5 percent securities due October 2017. Citigroup Inc. and Bank of America Corp. are managing the sale, which may close on Aug. 9.
Los Angeles-based Viking, which operates cruises on rivers from Europe to Asia, may issue $150 million of five-year PIK toggle bonds through MISA Investments Ltd., according to a person with knowledge of that transaction. Proceeds from the sale, which may be completed as soon as today, will be used to fund a payment to equity holders, the person said.
Wells Fargo & Co., Credit Suisse Group AG and Bank of America are managing that sale, the person said.
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