Songa Bulk Considering Tap Issue to Buy More Ships

Norway-based shipping company Songa Bulk ASA is contemplating a tap issue in order to use the net proceeds for the acquisition of additional dry bulk vessels.

The target amount is USD 18 million in the senior secured bond Songa Bulk ASA 17/22 FRN USD C, with a maturity on June 13, 2022.

The current outstanding amount is USD 120 million and the borrowing limit is USD 150 million.

Following a successful tap issue, the company said it will not carry out any additional tap issues.

The company revealed it is also in the process to dispose of one of its Supramax vessels. When concluded, the sales proceeds will be used for further vessel acquisitions, Songa Bulk said.

Songa Bulk has recently bought a number of second-hand vessels, prompted by attractive prices in the dry bulk sector. Earlier this week, Songa Bulk entered into an agreement to acquire a 2012-built Kamsarmax. The latest acquisition brings the company’s fleet to 15 vessels, which resulted in an investment worth USD 279.6 million.

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