Shipowners have been tapping a wide-open Oslo bond market to lower finance costs in a busy debt market.
Sale and leaseback specialist Ocean Yield, backed by American global investment company KKR, is the latest to try to take advantage of strong investor sentiment, after deals by Klaveness Combination Carriers and Kistefos this week.
Ocean Yield has asked Arctic Securities, Danske Bank, DNB Markets and Nordea to arrange meetings with investors from Friday.
A new NOK 750m ($71m) five-year bond could be sold with a floating interest rate.
“The proceeds from the potential bond issue are to be applied towards refinancing of outstanding debt and general corporate purposes,” the owner said.
The company will then offer a conditional buyback of its OCY07 bond.
This NOK 750m issue pays a coupon of the Norwegian interbank offered rate, or Nibor, plus 4.25%.
Ocean Yield has already bought back NOK 299.5m of the issue, which matures in December 2024.
The group said this month it had refinanced and upsized four existing loan facilities during and after the second quarter.
There will be a $74m positive liquidity effect from the deals.
New loan agreements were also put in place “at attractive terms” to finance two liquid ethylene carriers starting charters with Brazil’s Braskem, the company added.
Klaveness Combination sells over-subscribed series
Meanwhile, Klaveness Combination Carriers this week sold a NOK 500m ($47m) sustainability-linked issue maturing in 2028.
The series carries a coupon of Nibor plus 3.65%.
“The transaction was significantly over-subscribed,” the shipowner said.
Danske Bank, Nordea, Pareto Securities and SEB handled the deal.
The shipowner said it would repurchase NOK 508.5m of its KCC04 bond.
This NOK 700m series matures in February 2025 and carries interest at Nibor plus 4.75%.
And Christen Sveaas’ shipping investment company Kistefos sold a NOK 1.25bn ($117m) issue expiring in 2028.
Cash will go on redeeming NOK 645.3m of its KIST07 PRO tranche.
ABG Sundal Collier, Arctic Securities and DNB Markets were the investment banks overseeing the transaction.
Sveaas controls Swedish offshore support vessel owner Viking Supply Ships, as well as bulker operator Western Bulk.
Car carrier Wallenius Wilhelmsen also sold $95m of sustainability-linked bonds earlier in August.
