Ocean Yield, the listed Norwegian company that invests in ships for long-term charter to third parties, has raised NOK1.0 billion (USD126 million) in an issue of five-year unsecured bonds.
“Ocean Yield ASA has successfully completed a new unsecured bond issue of NOK 1,000 million with maturity date in April 2020, carrying a coupon of three months NIBOR [Norwegian Inter Bank Offered Rate] + 4.00% pa with quarterly interest payments,” the company said in a statement.
Ocean Yield said the issue was substantially oversubscribed and that the funds would be used for general corporate purposes.
This is the second five-year bond that the Aker group-controlled company has issued on the krone market. Last summer it raised NOK1 billion in an offer that carried a coupon of three-month NIBOR +3.90% pa. The slight increase in the coupon rate means slightly more expensive borrowing costs.
Shipping analysts have told IHS Maritime that Ocean Yield, which has a strong balance sheet and cash position, is in a good position to grow its business as some shipowners struggle to raise funding to take delivery of their newbuildings.
Earlier this month the company acquired eight chemical carriers currently under construction in a deal worth USD307 million.
This post was sourced from IHS Maritime 360: View the original article here.
