German container line Hapag-Lloyd is buying back a €280m ($314m) notes issue to boost its capital structure.
The debt carries 6.75% interest to 2022.
The owner is paying a fixed redemption price of 103.375%, mainly using cash.
But €100m will come from an existing credit facility.
"The complete repayment of this senior note ahead of maturity is a clear step forward towards further deleveraging and optimising our capital structure," said CFO Nicolas Burr.
"We are making good progress in our efforts to achieve our leverage target and the reduction of cost of debt, which continues to be an essential part of our strategic agenda.”
Hapag also said it had arranged a new €100m revolving credit facility with maturities of up to 18 months.
It can be extended by two years.
The loans were intended to be eligible for settlement of market-standard credit default swap transactions, but it is likely this is the cash being used to buy back the notes.
