Norwegian ferry owner Color Group is seeking to raise money to refinance maturing bonds.
“We will do a series of investor meetings. If the conditions are right, we will consider issuing a bond,” finance chief Bjorn Paulsen told TradeWinds.
According to Paulsen, the company has not determined the size of the issue but it could be NOK 600m to NOK 700m ($65m).
The company has mandated several banks to hold fixed-income investor meetings.
Arctic Securities, Danske Bank, DNB Markets, Nordea and SEB will arrange the events, starting today, 4 April.
A new 5-year senior unsecured floating rate bond issue may follow, Color Group said in a statement.
“We have to check whether the market is good. If we see the market as good enough we will probably issue a bond,” CFO Paulsen said.
According to the statement, the proceeds from the issue will be used for refinancing of outstanding debt and general corporate purposes.
In connection with the issue, the company may offer a conditional buyback in its outstanding bond with ticker COLG16.
A buyback will be contingent upon investors subscribing to the new bond issue.
The COLG16 bond has close to NOK 800m in outstanding amount and has maturity in October 2024.
Color Line has a fleet of five cruise ships.
It operates four ferry lines between seven ports in Norway, Germany, Denmark and Sweden.
Color Group is the holding company of Color Line.
Investment company ON Sunde owns 100% of Color Group. Olav Nils Sunde is the founder and executive chairman of ON Sunde.
