American Shipping asks to clarify call option on PIK floaters due 2018

By Susanna Moon

Chicago, Oct. 25 – American Shipping Co. ASA is looking to amend its senior pay-in-kind floating-rate callable bonds due 2018 and has set a meeting for Nov. 1 in Oslo to ask for noteholder approval.

Specifically, American Shipping is seeking to “simplify and clarify” its call option to say that the notes may be redeemed at any time at 101% of par plus accrued interest with five days’ notice, according to a notice by Nordic Trustee ASA.

To form a quorum, there must be at least half of the voting bonds represented at the meeting and, to pass, at least two-thirds of votes must be cast in favor.

The floaters were issued in 2007.

American Shipping said on Oct. 13 that it was looking to refinance its unsecured bonds due February 2018.

American Shipping is “exploring options” for refinancing the bonds and had hired Arctic Securities, Clarksons Platou Securities, Pareto Securities and SEB as its financial advisers, according to a previous company notice.

American Shipping, formerly known as Aker American Shipping ASA, is an Oslo-based shipping company.

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