Klaveness Combination Carriers (KCC) has mandated four banks to issue new bonds under its 2028 bond.
Danske Bank, Nordea, Pareto Securities and SEB have been hired to arrange a fixed-income investor call today.
A sustainability-linked tap issue under the existing senior unsecured bond with a maturity date of 5 September 2028 may follow, the company said in a statement.
The face value of the bond is NOK 500m ($46m).
The proceeds from the potential issue will be used for general corporate purposes, which may also include refinancing of debt.
The coupon of the 2028 bond is three months Nibor plus 3.65%.
Oslo-listed KCC has also issued another bond that matures in February 2025.
The outstanding amount is NOK 191.5m and the coupon is three months Norwegian Inter-Bank Offer Rate plus 4.75%.
Last week, KCC reported its results for the first quarter.
“Product tankers remain very strong in 2024, with demand surely outpacing supply,” chief executive Engebret Dahm said.
Net earnings dropped to $26m in the first quarter, from $28.2m a year ago, as revenue declined to $60.7m from $75.1m.
“This market will be impacted by the unwinding of disruptions in the Red Sea. There are still no signs we can see of any easing and it’s quite unpredictable to see when that could happen,” he said.
KCC logged all-time high time-charter equivalent earnings for the fleet at $40,514 per day, up from $36,823 in the fourth quarter.
“Market balance for 2025 also looks firm with solid demand growth, but with the likely unwinding of some inefficiencies and disruptions, it likely may be softer than what we see this year,” Dahm added.
