SFL Corp has hired Arctic Securities and DNB Markets for a new bond issue that could top $200m.

The two investment banks will arrange a series of fixed income investor meetings beginning today, Tuesday, 2 April.

“We are in the market. In the first round it is investor meetings. There could very well be a bond issue after this,” chief executive Ole B Hjertaker told TradeWinds.

Hjertaker said the new issue could land between $100m and $200m. Documents seen by TradeWinds suggest the issue could reach $225m.

“We have to see how the meetings are and how big the interest is. It is not something we must do. We can pay back the loan in June with cash. But we think it is reasonable to be active in the market and have a presence in the market,” he added.

The New York-listed company intends to issue a US dollar denominated senior unsecured bond.

“First, the market is good now. Second, we have a loan that matures in June. It is natural to refinance that loan. And we have another loan in January 2025,” Hjertaker said.

Net proceeds from the issue will be used for general corporate purposes, the John Fredriksen-backed shipowner said in a statement.

SFL has four outstanding senior unsecured notes listed at the Oslo Stock Exchange.

The one maturing in June has an outstanding amount of NOK 695m ($638m). The January 2025 bond has an outstanding amount of NOK 540m.

Two issues of $150m each have maturity in 2026 and 2027, respectively.

“This is a part of our ordinary financing structure. It is a combination of some refinancing of existing loans and raising some capital that we can invest,” Hjertaker said.

In March, SFL bought three LR2 tanker resales from Fredriksen’s private fleet in a $230m deal.

The company said then it expects to take delivery of the vessels between the second and fourth quarter of this year, and the charter period will be minimum five years plus up to three years of extension options.