Norwegian shipowner Songa Bulk ASA is looking issue a 5-year senior secured bond in an effort to finance acquisition of additional vessels.
The company has, as part of the previously communicated strategy to take on moderate leverage, mandated ABG Sundal Collier ASA to arrange a series of fixed income investor meetings in the Nordics commencing on May 29, 2017.
The senior secured bond may be launched following the investor meetings and subject to inter alia market conditions, Songa Bulk said.
The shipowner added that it would continue its “low cost efficient operational platform with focus on returning capital to its shareholders through asset sales and/or dividends as the market recovers.”
Earlier this year, the company entered into agreements to acquire two bulk carriers for USD 43.3 million.
The 82,158 dwt Kamsarmax bulk carrier, built in 2012 at Tsuneishi Japan, and a 61,491 dwt Ultramax bulker, constructed in 2017 at China’s Dalian COSCO KHI Ship Engineering Co (DACKS), were scheduled to join their new owner by the end of April.
In April 2017, Songa Bulk acquired a 2009-built Capesize bulk carrier which is scheduled to join the company’s fleet by the end of July 2017.
With the addition of the Capesize, the company’s fleet will consist of ten vessels, including three Supramaxes, six Kamsarmaxes and one Capesize, with a total acquisition price of USD 171.9 million.
Songa Bulk earlier said that all transactions completed “are done on an all cash basis, but given the improved market environment the company is in positive dialogue with several banks to take on moderate leverage.”