By Susanna Moon
Chicago, Feb. 9 – American Shipping Co. ASA issued $220 million of five-year senior notes in the Nordic bond market through its wholly owned subsidiary American Tanker Inc.
Ocean Yield ASA has been allocated $50 million in the new bond issue, according to a company announcement.
Arctic Securities, Clarksons Platou Securities, Pareto Securities and SEB are the joint lead managers.
Proceeds will be used to call the company's $216 million of senior bonds at 101% of par plus accrued interest.
Ocean Yield owns 93.05% of the current bonds worth $200.6 million principal amount.
“We are pleased that American Shipping Company ASA has successfully refinanced the current outstanding bond,” Ocean Yield chief executive officer Lars Solbakken said in a statement.
“Ocean Yield will in return for redemption of the outstanding bonds be allocated $50 million in the new bond issue and receive net cash proceeds of about $156 million that we intend to primarily invest in new vessels with long term charters.”
The company previously said that some of the bonds may be offered in the United States to qualified institutional investors under Rule 144A concurrently with bonds offered outside of the United States under Regulation S.
American Shipping, formerly known as Aker American Shipping ASA, is an Oslo-based shipping company.
| Issuer: | American Tanker Inc.
|
| Issue: | Senior notes
|
| Amount: | $220 million
|
| Maturity: | February 2022
|
| Lead managers: | Arctic Securities, Clarksons Platou Securities, Pareto Securities and SEB
|
| Co-manager: | Sparebank 1 Markets
|
| Settlement date: | Feb. 9
|
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