ISIN.net update: In effort into optimize its capital structure and reduce interest costs, fleet shipping concern Hapag-Lloyd announced the call (repayment) of US$ 125 million in principal amount of its US dollar denominated bond due 2017 (Reg. S bonds: ISIN USD33048AA36 / Rule 144A bonds: ISIN US41135QAA22) for partial redemption approximately two years prior to the maturity date on 15 October 2017.
The bond, with an aggregate principal amount of US$ 250 million, was issued in October 2010 with an annual coupon of 9.75%, reflecting high interest rate levels as a consequence of the financial crisis at that time.
The partial redemption is conditional upon the successful completion of a refinancing of the Companyâs Fleet Financing 2011 with a new vessel financing facility in an amount of at least $115,000,000 provided by existing relationship banks of Hapag-Lloyd.
âWith the early partial redemption of our US dollar bond, we are reducing Hapag-Lloydâs cost of capital with tangible savings to our shareholdersâ, said NicolĂĄs Burr, Chief Financial Officer of Hapag-Lloyd. âAlong with the recent announced restructuring of existing vessel financings the early partial redemption further improves our financial position and we make a step forward in our plan to reduce our interest costs and add more financial flexibility.â
The call notice for the partial redemption was sent to the trustee and bondholders today. The early redemption will take place on 30 December 2015 if the condition to the redemption is fulfilled. The redemption price is 102.4375% of the principal amount of the redeemed bonds, plus accrued and unpaid interest. Hapag-Lloyd may decide to further redeem the US dollar bond in full or partially prior to maturity in 2017.