Norwegian shipowner Songa Bulk ASA has completed the issuance of a USD 75 million senior secured bond to finance acquisition of additional dry bulk vessels.
The company said that the bond issue, which has a total borrowing limit of USD 150 million, was oversubscribed and “received strong demand from high quality investors.”
Settlement is expected to be June 13, 2017, with final maturity June 13, 2022. The bond issue has a floating interest rate of 3M LIBOR + 4.50% p.a.
Songa Bulk added that an application will be made for the bonds to be listed on Oslo Børs.
“We are very pleased with the positive response received from bond investors. We are happy that we have been able to raise USD 75 million at a very competitive interest margin of 4.50% p.a., as part of the previously communicated strategy to take on moderate leverage,” Arne Blystad, Chairman of the Board of Directors of Songa, said.
ABG Sundal Collier ASA acted as sole manager in connection with the new bond issue.