Norway’s Ocean Yield has successfully completed the issue of new hybrid bonds.
A new perpetual callable hybrid bond issue of $75m “attracted strong interest and was well oversubscribed”, the sale-and-leaseback specialist said in an Oslo Stock Exchange filing.
The bonds are carrying a coupon of the secured overnight financing rate plus 5.35% per year with quarterly interest payments.
Net proceeds from issue will be used for general corporate purposes, Ocean Yield said.
The hybrid bond will be accounted for as equity in the balance sheet and constitute subordinated obligations of the company.
Last week in connection with Ocean Yield’s fourth-quarter results, TradeWinds reported the company is upbeat about prospects for more sale-and-leaseback deals this year.
“Following increasing newbuilding and S&P activity, we are constructive on the outlook for investment activity in the year ahead,” chief executive Andreas Rode said then.
Arctic Securities, Danske Bank, Nordea and SEB acted as joint lead managers in connection with the placement of the new bond.
BAHR acted as legal adviser to Ocean Yield.
The company will apply for the bonds to be listed on Oslo Stock Exchange.
