WASHINGTON, July 3 (Reuters) - Orient-Express Hotels Ltd., a luxury hotel and leisure company, on Monday set
an initial public offering at 10 million class A common shares in a range of $20-$23 a share.
The Bermuda-based unit of Sea Containers Ltd. (NYSE:SCRa) (NYSE:SCRb), the passenger transport operator and marine
container lessor, disclosed the terms of the IPO for the first time in a filing with the U.S. Securities and Exchange
Commission.
When the IPO is completed, the outstanding capital stock of Orient-Express will consist of 28.4 million class A
shares, of which Sea Containers will hold about 65 percent, and 2.5 million class B shares, all of which Sea Containers
will hold.
Orient-Express is selling 5 million shares and Sea Containers is selling the other 5 million.
Orient-Express plans to use the estimated $100 million in net proceeds to repay about $95 million of its existing
debt secured by five of its properties, which will then be available to secure a $125 million revolving credit
facility to fund future acquisitions and expansions.
The company, which currently owns and operates 26 hotels worldwide, plans to use the rest of the proceeds for working
capital and general corporate purposes, the filing said.
Orient-Express said it will not receive any of the proceeds from the 5 million shares being offered by Sea Containers.
The company, which also owns and operates six tourist trains, a river cruise ship and two restaurants, has applied
for a New York Stock Exchange listing under the symbol ``OEH'' (NYSE:OEH).
The co-lead managers of the IPO are Merrill Lynch and Lazard.