Klaveness Combination Carriers (KCC) completed a tap issue under its existing sustainability-linked senior unsecured 2028 bonds.
The Oslo-listed shipowner sold NOK 300m ($28m) of additional bonds after holding investor calls earlier today.
The total outstanding amount after the tap issue will be NOK 800m.
The transaction was significantly oversubscribed, the company said.
A tap issue is a transaction that allows bond issuers to sell bonds from a past issue.
The additional bond has the same face value, maturity, and coupon as the original issue but is sold at the current market price.
Today’s tap issue was priced at 104.26% of par value.
The 2028 bonds have a coupon of three months Norwegian Inter-Bank Offer Rate plus 3.65% and maturity on 5 September 2028.
The additional bonds will be issued under a temporary ISIN NO0013233759 until a listing prospectus has been approved.
Danske Bank, Nordea, Pareto Securities and SEB acted as joint lead managers for the tap issue.
The proceeds from the potential issue will be used for general corporate purposes, which may include refinancing of debt.
KCC also has another outstanding bond that matures in February 2025.
The remaining outstanding amount after buybacks 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.
Net earnings dropped to $26m, from $28.2m a year earlier, as revenue fell to $60.7m from $75.1m.
“Product tankers remain very strong in 2024, with demand surely outpacing supply,” chief executive Engebret Dahm said.
“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.”
