CMA CGM has borrowed a further US$945 million through the sale of bonds, and it will be restructured for a second time in the space of a yearifw-net reports.
The French carrier initially hoped to raise around $800 million, but because demand for the bond issue was high, the initial offering was increased to $945 million.
The issue features $475 million of dollar-denominated senior notes, with an interest rate of 8.5%, which are due to mature in 2017, and €325 million of euro-denominated notes, with an interest rate of 8.875% due 2019.
The proceeds have been deposited into escrow, a holding account, subject to release upon conditions related to the company’s restructuring.
Upon successful release from escrow, the proceeds will be used to refinance existing debts and the future development of the group.
Rodolphe Saadé, Deputy General Manager of CMA CGM, said: “The market’s warm welcome to our issuance of notes reveals the relevance of our strategy and the strong position we hold in the shipping market.
“CMA CGM expects to enjoy a strengthened financial position on which the group will rely to continue its expansion.
“We now envisage the future calmly and believe we will be able to focus on our future development and challenges.”
In January, Turkish conglomerate the Yildirim Group finalised a deal to invest $500 million in CMA CGM in return for a 20% stake. CMA CGM was restructured following the investment.
The French carrier initially hoped to raise around $800 million, but because demand for the bond issue was high, the initial offering was increased to $945 million.
The issue features $475 million of dollar-denominated senior notes, with an interest rate of 8.5%, which are due to mature in 2017, and €325 million of euro-denominated notes, with an interest rate of 8.875% due 2019.
The proceeds have been deposited into escrow, a holding account, subject to release upon conditions related to the company’s restructuring.
Upon successful release from escrow, the proceeds will be used to refinance existing debts and the future development of the group.
Rodolphe Saadé, Deputy General Manager of CMA CGM, said: “The market’s warm welcome to our issuance of notes reveals the relevance of our strategy and the strong position we hold in the shipping market.
“CMA CGM expects to enjoy a strengthened financial position on which the group will rely to continue its expansion.
“We now envisage the future calmly and believe we will be able to focus on our future development and challenges.”
In January, Turkish conglomerate the Yildirim Group finalised a deal to invest $500 million in CMA CGM in return for a 20% stake. CMA CGM was restructured following the investment.