Norwegian car carrier owner Wallenius Wilhelmsen is to gauge investor appetite for a bond issue following a loss-making second quarter.
The Oslo-listed company said it has brought in Danske Bank, DNB Markets, Nordea, SEB and Swedbank as joint lead managers.
They will set up fixed-income investor meetings from next Monday.
A four-year bond in Norwegian krone could then be sold, subject to market conditions, Wallenius Wilhelmsen said.
Proceeds will be used for partial refinancings of outstanding bonds and general corporate purposes.
If it goes ahead, it may buy back some of its NOK 1bn ($112m) WALWIL01 bonds due in October 2022 and the NOK 1bn WALWIL02 series due in September 2021.
The full amount remains outstanding for the 01 tranche, with NOK 750m still due on the other.
This week, US-listed LPG carrier owner Navigator Holdings also told the Oslo bourse that it will meet with investors over a potential bond issue.
Wallenius Wilhelmsen said in its second quarter results on Wednesday that it expects the effects of the pandemic to linger on into the third quarter.
Loss logged in tough quarter
The company revealed a net loss of $69m to 30 June, against profit of $3m in 2019.
This increased the loss in the first half of the year to $353m.
Revenue plunged to $606m from $1bn the year before as ocean volumes dropped 45% because of lower carryings across all trade lanes and product segments. This compared to its earlier forecast of 50%.
The company has taken action to cut costs, redelivering chartered vessels and laying up 15 of its own, up from a previous target of 10.
Sailings were rationalised and speed was reduced to further take out capacity.
Cash reserves stood at $539m at the end of the second quarter, up from $451m in the first quarter.
The company said it was well prepared to "manage through this unprecedented market situation".
Wallenius Wilhelmsen has also agreed a deal with its banks to defer instalments of about $70m due in the second half of 2020.
