Newland Sells $220m Bonds

Newland International, builder of the Trump Ocean Club in Panama, has priced a $220m 2014 NC3 bond offering at 96.934 with a 9.5% coupon to yield 10.25%, versus 9.375%-9.625% guidance. Postponed from last week, the issuer took advantage of a 24-hour period of relative calm in the market to issue at a deep discount. Demand reached $300m, according to bankers on the deal. The book consisted primarily of international investors, which made offering a discount of more than 25bp easier, as they are not exposed to the tax issues that come with such a pricing. The recent pulling of several other deals, such as fellow resort Cap Cana’s $500m offering, may have also helped. Bear Stearns led the transaction.