CSAV to Aquire New Containerships (Chile)

CSAV to Aquire New Containerships

The Board of Directors of Compañía Sud Americana de Vapores S.A. (CSAV) has approved yesterday an investment plan of US$570 million consisting in the acquisition of seven new containerships and the prepayment of a debt facility of US$258 million at a significant discount.

The 9,300 TEU vessels will be built by Samsung Heavy Industries (SHI), South Korea. They will be delivered as from the end of 2014. The objective of this investment is to replace part of the existing chartered capacity. Thus, CSAV will increase its own fleet from the current 37% to around 55%, in line with the industry average and far from the 8% owned at the beginning of 2011.

These new vessels will significantly improve the fuel-consumption efficiency (main cost of the industry) of the CSAV fleet and will lower vessel-chartering costs; allowing the company to operate one of the most efficient containerships fleet of the industry. CSAV is planning to finance the newbuilding order with 40% equity (about US$230 million) and 60% financial debt (about US$340 million). CSAV also has the option to order up to seven additional vessels on similar conditions.

The Board of Directors also approved the prepayment of US$258 million of the American Family Life Assurance Company (AFLAC) debt facility. This prepayment considers a 46% discount, which will generate a positive result of around US$50 million, after netting the loss generated by unwinding the foreign exchange derivative related to this loan. In addition, the Company will also release US$25 million in collateral deposits. CSAV will draw a bridge loan of around US$140 million with Banco Latinoamericano de Comercio Exterior S.A. to execute this prepayment.

The Board of Directors summoned a special shareholders meeting to be held April 29, 2013 in order to propose a capital increase of US$500 million to finance the newbuilding investment plan, the debt prepayment and the continuation of the company’s development plans.

Mr. Oscar Hasbún, CEO of CSAV, pointed out “that this important milestone for the company is consistent with the new strategic direction and the restructuring plan finalized during 2012. Additionally, this plan will significantly reduce CSAV financial leverage and will allow the company to acquire large and efficient vessels at attractive prices. The newbuilding investment plan is aligned with the strategic direction of joint operations, search of economies of scale, right proportion of own fleet and cost efficiency. Therefore CSAV will be able to maintain the already gained efficiencies further improving the company’s costs structure”.

CSAV, April 4, 2013

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2016 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 1 2 3 4 5 6

PUMPS & VALVES 2016

The 16th edition of PUMPS & VALVES in co-location with Maintenance, 20 and 21 April 2016 in Antwerp expo, will present a complete overview of all the technologies and innovations in the field of industrial pumps, valves and seals.

The exhibition will feature industrial pumps, control valves, valves, seals, filters and filtration, processing equipment, piping & pipelines, services for industry, governmental agencies & pipeline operators.

Pumps and Valves’ second duo edition, co-located with Maintenance, enjoyed a solid 8% increase in visitors with a total of 5.492 visitors.

read more >

FPSO Europe Congress

Why Attend the 2nd Annual FPSO Europe Congress?
Discover how FPSO leaders are embracing the new realities of a low oil price environment – what are the strategies to adopt in pursuit of viable economical FPSO projects?…

read more >

Port & Terminal Technology Conference & Exhibition 2016

MCI Media Limited are hosting the 8th International Port & Terminal Technology Conference & Exhibition in Charleston, SC.

This year, we are delighted to welcome South Carolina Ports Authority as official supporters.

Having established itself as a “must-attend” key industry event, Port & Terminal Technology will deliver an informative and technical conference programme complemented by an impressive line-up of industry experts.

Exploring the latest developments, issues, trends and technology affecting ports and terminals around the globe, the conference will provide delegates an invaluable learning opportunity as well as an excellent platform for discussion, debate and networking.

Port & Terminal Technology is specially designed for representatives from operations, maintenance and engineering from port authorities, terminal operators, consultancy firms, dredging contractors, maritime construction firms and suppliers of cargo handling equipment and those involved in the effective development and operation of container ports and terminals.

The conference is complemented by an intimate exhibition, comprising a select handful of elite market leaders, enabling companies to reach a niche target audience, showcase their products and network with potential, new and existing clients.

read more >

World Water Works 2016

Rising sea levels, ever-larger container ships, increased pressure on the accessibility of ports and waterways and the associated infrastructural requirements are all global problems.

The time is ripe for sustainable solutions which are both financially feasible and ecologically responsible.

Conference and exhibition

The two-day international hydraulic engineering conference and exhibition World Water Works on 23 and 24 March 2016 at Antwerp Expo brings together science, industry practices and trends related to:

– Hydraulic engineering
– Accessibility of ports and waterways
– Coastline and shoreline projects
– The construction of bridges, locks and tunnels
– Future offshore sea ports

read more >