Borealis Maritime is set to tap the bond market for fresh capital to support expansion.
Borealis Finance has launched a bid to issue five-year senior secured bonds of $150m, with a limit of up to $200m, according to the private placement documents this week.
The proceeds from the first-priority bonds, which will have maturity in November 2022, are earmarked to repay a credit facility of $115.5m and to purchase additional vessels.
Fresh capital of $20m is to be used within bulkers or in feeder containerships, as both sectors are “in recovery phase”, according to prospectus.
Borealis Maritime was founded in 2010. In the past seven years, it has raised $430m from various investors for 25 projects and 76 vessels.
Out of 72-strong fleet now, the main segment is containerships with 35 units, followed by 28 chemical and products tankers, seven bulkers and two LPG carriers.
The offering is being secured by 21 assets, which are 17 feeder boxships, three panamax bulkers and one supramax bulk carrier.
Broker valuations issued by Howe Robinson and Maersk Broker for these lien-vessel assets come to $257.7m, according to the documents.
Borealis Finance, which is fully owned by Borealis Holdings, is the issuer of the bonds, which are to be listed on the Oslo exchange if successful.
With Borealis Maritime principals hold a 0.25% stake, KKR managed funds own 99.75% of Embarcadero Maritime, which in turn owns 100% of Borealis Holdings.
For the proposed issue, Borealis Finance is using DNB Markets, Pareto Securities and Joh Berenberg, Gossler & Co.
