Norway’s Ocean Yield is splashing more of its cash to redeem a bond issue due in May.
The sale-and-leaseback shipowner, which is controlled by US private equity giant KKR, said it is exercising a call option to buy back the NOK 750m ($73m) series on 17 February.
The redemption price will be at 100% of par.
The bonds carry interest of Nibor — the Norwegian Interbank Offered Rate — plus 3.65%.
Ocean Yield said it has notified bond trustee Nordic Trustee of its intention.
The company has two other bond issues outstanding.
A $125m perpetual tranche carries interest of Libor — the London Interbank Offered Rate — plus 6.75%, while another NOK 750m issue expires in December 2024 at Nibor plus 7.25%.
Ocean Yield has already bought back NOK 20m of this second series.
The company’s cash position was strong at the end of the third quarter, with $122m in the bank.
Net profit for the period was $23.4m, while refinancing of several loan facilities in the final three months boosted available liquidity by $90m.
Big backlog after bulker deal
Ocean Yield had an Ebitda charter backlog of $3.4bn on 30 September.
In December, the company spent $576m on a bulker newbuilding deal, net of a sellers’ credit, acquiring up to 10 newcastlemaxes with delivery between the start of 2025 and the second quarter of 2026.
Fearnley Securities expects the gross price to be closer to $650m — or $65m per vessel.
On delivery, the ships will start 15-year bareboat charters to a “leading dry bulk operator”, with purchase obligations at the end of the period.
