Sanctioned Russian state ship-owner Sovcomflot (SCF Group) is launching a second domestic bond issue to replace Irish debt.
The tanker and LNG carrier owner ran into trouble with two eurobond series earlier this year when its agent refused to handle coupon payments to investors.
The company tried to resolve the situation and last month settled on Russian replacement bonds as the answer.
The owner sold $318m of 2028 replacement notes in October, 74% of the value of the first Irish series. The coupon remained at 3.85%.
The Expert RA ratings agency assigned a rating of ruAAA to the issue, with a stable outlook.
Now the shipowner is tackling its $900m 2023 maturity.
Investors have until 24 November to swap their notes.
Payments to investors will be made in rubles.
Sovcomflot sold the debt in 2016 at 5.375%.
Terms of the new bonds will be similar regarding maturity and the coupon.
The shipowner missed two interest payments on its two issues this year.
The missed coupon in April was worth $8.28m on the 2028 series, while the missed June payment was not specified.
The company has tried to reassure markets it is a sound financial player.
“As a responsible and trustworthy borrower, Sovcomflot confirms that it is committed to fully discharging the obligations under the notes and that it has the necessary financial resources to do so,” the owner said in October.
The Irish notes were delisted by the Irish Stock Exchange in Dublin on 12 April, which Sovcomflot said was done “without proper notification”.
On 31 December, the company had $600m of cash and cash equivalents.
