Klaveness Combination Carriers will call the outstanding amount of its NOK 700m ($63m) bond loan.
The Oslo-listed company has decided to exercise its call option and complete a voluntary early redemption of all outstanding bonds under the senior unsecured 2025 issue.
The original maturity was 11 February 2025.
The company already holds NOK 508.5m of the outstanding bonds and will now call the remaining amount of NOK 191.5m.
“We have already refinanced the amount. That is why we were in the market last year and in the spring,” finance chief Liv Dyrnes told TradeWinds.
In May, KCC sold an additional NOK 300m of bonds under its existing sustainability-linked senior unsecured 2028 bonds.
It is now the only outstanding bond of KCC with a total amount of NOK 800m.
“We wished to get cheap refinancing at some time and we thought the timing was good. Now it is natural to call the outstanding amount because this is the first call option on the bond. We are just trying to optimise refinancing,” Dyrnes said.
Shipping companies have enjoyed record-low credit spreads in the Nordic high-yield market this year.
KCC’s 2028 bonds have a coupon rate of three-month Norwegian Interbank Offered Rate (Nibor) plus 3.65%. The 2025 bonds have a coupon rate of three-month Nibor plus 4.75%.
The redemption price of the 2025 bond is 100.75% of the nominal amount plus accrued and unpaid interest.
The date of redemption is 12 August 2024.
Earlier in July, KCC released preliminary figures for the second quarter.
Its fleet average earnings were $38,376 per day, $2,100 lower than in the first quarter, but at the high end of the guidance range of between $36,700 and $38,700 per day.
KCC’s fleet consists of eight CABU combination carriers and eight CLEANBU combination carriers, with three CABU newbuildings arriving in 2026.
