Carlson Announces Pricing of $360 Million of Senior PIK Toggle Notes

Published on : Friday, June 27, 2014

Carlson-300x102Carlson, a global hospitality and travel company, today announced the pricing of the previously announced offering by Carlson Travel Holdings, Inc.


(“CTH”) of $360 million aggregate principal amount of 7.50%/8.25% Senior PIK Toggle Notes due in 2019 (the “Notes”), pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended.  The Notes were priced at par and will bear a cash pay interest rate of 7.50% per annum, payment-in-kind (“PIK”) interest rate of 8.25%, payable semiannually, beginning on February 15, 2015.  CTH expects to close the offering of the Notes on or about July 3, 2014, subject to the satisfaction of customary closing conditions.

The net proceeds of the offering will be used to partially finance the acquisition from JPMorgan Chase & Co. the 45% equity interest it holds in Carlson Wagonlit Travel (CWT).  As a result of this acquisition, Carlson will own 100% of CWT.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This document is neither an offer of securities for sale nor the solicitation of an offer to purchase securities in the United States or any other jurisdiction.  The securities described herein may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”).  The Notes have not been and will not be registered under the Securities Act and CWT does not intend to make a public offer of its securities in the United States.


Source:- Carlson

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