• BIST 107.202
  • Altın 145,420
  • Dolar 3,5161
  • Euro 4,1312
  • İstanbul 26 °C
  • Ankara 23 °C

Frontline plans $225m bond issue

Frontline plans $225m bond issue
Tanker major Frontline plans to raise $225m by issuing convertible bonds to fund its fleet expansion strategy.

Frontline plans $225m bond issue

Tanker major Frontline plans to raise $225m by issuing convertible bonds to fund its fleet expansion strategy.

John Fredriksen"s flagship tanker owner said it would use the funds to help pay for the newbuildings it has on order and to provide a fund for ?reacting to attractive market opportunities?.

The Bermuda-based shipowner will sell five-year bonds that will pay a coupon of 4%-4.5% a year. They could be swapped for Frontline stock at a premium of 30%-35% over the market price of the company"s shares on the Oslo stock exchange between the start of the sale and the pricing.

Frontline wants to settle the bonds on April 14 and they will be ready to mature in April 2015 unless they are not previously redeemed, converted or purchased.

Scandinavian banks ABG Sundal Collier and Arctic Securities are working with Germany"s Deutsche Bank to manage the bond sale.

ABG Sundal Collier and Deutsche Bank are the bookrunners and have an option to purchase $25m of the bonds, which is included in the $225m Frontline wants to raise.

?The proceeds of the bonds will be used for general corporate purposes, financing of the remaining equity investments in the company"s newbuilding programme and will improve the company"s ability to react to attractive market opportunities,? Frontline said in a statement.

Frontline has six very large crude carrier and four suezmaxes on order for deliveries to 2012.

It will announce the final terms and conditions of the convertible bond transaction later today.

www.turkishmaritime.com.tr

This news is a total 2242 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |