John Fredriksen’s SFL Corp is going on the road to gauge interest for a new bond issue as earlier debt falls due in May.
The Oslo-listed sale-and-leaseback specialist has engaged Norwegian investment banks Arctic Securities and DNB Markets to arrange a series of fixed-income investor meetings starting on Friday.
A US dollar-denominated four-year note may follow, subject to market conditions.
SFL said net proceeds would be used to refinance existing bonds and for general corporate purposes.
Executives were not immediately available for comment.
The target is likely to be its $164m issue of convertible bonds sold in 2018, due on 1 May, of which $137.9m remains outstanding, at a coupon of 4.875%.
There are also four regular bond issues.
A $150m series is due in 2026, with interest of 7.25%.
The first of its Norwegian krone-denominated bonds, a NOK 700m ($70m) issue, expires in September this year at interest of Nibor plus 4.75%.
Then there is another NOK 700m series that matures in 2024 at Nibor plus 4.6%.
Cash in the bank
And a 2025 tranche is worth NOK 600m at Nibor plus 4.4%. SFL has redeemed NOK 60m of this.
The shipowner said in November that it has the financial firepower to pursue more acquisitions.
In the previous two months, it had bought two container ships for charter to AP Moller-Maersk and a car carrier.
The company had $179m of cash and cash equivalents at 30 September.
SFL was in advanced discussions at that time to arrange a $144m long-term loan to part-finance four suezmax tankers bought for $222.5m from Ciner Ship Management and CSSC Shipping in August.