John Fredriksen’s lease financing company SFL Corp is paying off a 2024 bond maturity early after sealing a new $150m issue earlier this month.
The New York and Oslo-listed shipowner said it had notified bond trustee Nordic Trustee that it would exercise a call option for the NOK 700m ($63.5m) series sold in 2019, of which NOK 695m remains outstanding.
The five-year bonds are due to expire in June, but will be redeemed on 6 May at 100.5% of the remaining amount plus accrued interest.
The debt was issued at the Norwegian interbank offered rate (Nibor) plus 4.6%.
The $150m sale earlier in April was tied to sustainability goals, with a coupon of 8.25% per year.
No details were given, but SFL’s previous bonds provide investors with a 0.5% premium if the company misses sustainability targets.
The new debt matures over four years.
SFL had said it would use the case to refinance existing bonds and for general corporate purposes.
At the end of 2023, SFL’s balance sheet showed nearly $2.07bn in long-term, interest-bearing debt.
The company owns a fleet of tankers, bulkers, container vessels, car carriers and offshore drilling rigs.
Bond debt will total about $504m after the 2024 notes are redeemed.
Another Norwegian series worth NOK 600m matures in 2025 at Nibor plus 4.4%, and there are two other $150m US issues due in 2026 and 2027 at interest of 7.25% and 8.875% respectively.
