Norway’s Ocean Yield is eyeing another domestic bond issue to refinance debt.
The KKR-owned vessel sale-and-leaseback specialist said in a filing that it has asked investment banks Arctic Securities, Danske Bank, Nordea Bank and SEB to arrange a series of fixed income investor meetings, starting on Monday.
Subject to market conditions, the owner may issue a new four-year krone-denominated floating rate bond as a result.
“The proceeds from the potential bond issue are to be applied towards refinancing of outstanding debt and general corporate purposes,” it said.
And it may also offer buybacks of two earlier series.
These are a $125m perpetual tranche that carries interest of Libor — the London Interbank Offered Rate — plus 6.75%; and a NOK 750m ($73m) issue that expires in December 2024 at Nibor — the Norwegian Interbank Offered Rate — plus 7.25%.
Ocean Yield has already bought back NOK 20m of this second series.
In January, the company said it was splashing more of its cash to redeem a bond issue due in May.
It said it was exercising a call option to buy back the NOK 750m tranche.
The redemption price was at 100% of par.
The bonds carry interest of Nibor plus 3.65%.
The company had $122m in cash at year-end.
Already this year, it has increased several loan facilities by $55m.
Net profit for the fourth quarter was $21.1m, against $17.9m in 2021, while revenue grew to $55.4m from $47.4m.
Earnings for the whole of 2022 were $91.2m.
