PALIBURG Holdings is talking to banks about raising US$60 million in an issue of floating-rate notes, offering shares in its subsidiary, Regal Hotels International Holdings, as collateral. Peregrine is arranging the deal, which is for three years, according to a banker close to the issue. Pricing has not been set, but is expected to be in the range of 190 to 210 basis points (1.9 to 2.1 percentage points) above the London interbank offered rate. The banker said the issue would include call options after one year. Bankers are understood to consider the timing of the issue unfortunate. Paliburg last month reported an 85.4 per cent plunge in interim profits to HK$180 million from $1.23 billion a year earlier. Its holding company, Century City International Holdings, reported an 87 per cent decrease in earnings. Subsidiary Regal Hotels performed well in the same period, with a 6.6 per cent profit increase, with overall occupancy rates for the four Regal Hotels in Hong Kong in line with the market average of about 82 per cent, as recorded by the Hong Kong Tourist Association. Regal Hotels' average room rates rose about 19 per cent in the June half, compared with the previous first half, and occupancy of group hotels in the United States was above the national average, forecast to be 66.7 per cent for this year.