CMA CGM finalized its financial restructuring
CMA CGM finalized its major financial restructuring launched less than a year ago:
- Closing of the agreement with its Banks regarding its debt restructuring. This agreement provides for a new covenant package taking into account the industry’s volatility and a partial refinancing of a credit line maturing in 2013 into new secured term loans of a maturity of more than 3 years for a total amount of EUR 280 million .
- Signing of a binding agreement with the French Fonds Stratégique d’Investissement who at closing, expected within 3 months, will subscribe to bonds redeemable in shares for an amount of US$150 million giving right to a 6% stake in CMA CGM upon conversion.
- Closing of the subscription, under the terms of the existing agreement, by the Yildirim Group of bonds redeemable in shares for an amount of US$100 million giving right to a 4% stake in CMA CGM upon conversion.
A few weeks after the signing of the sale of 49% of Terminal Link to China Merchants Holdings International for EUR 400m, CMA CGM’s agreement with its banks together with new equity injection will result in a significantly more resilient and flexible financial structure.
Rodolphe Saadé, CMA CGM’s Executive Officer, said: “The finalization of the debt restructuring combined with new equity injection from FSI and Yildirim Group and the sale of 49% of Terminal Link will allow CMA CGM to operate with the required financial flexibility and constitutes key milestones before contemplating an IPO.”
CMA CGM, founded and managed by Jacques R. Saadé is the world’s third largest container shipping company and has an estimated turnover of 16 billion USD in 2012.Operating a fleet of 410 vessels, the Group serves more than 400 ports around the world. In 2012, the Group expects to carry 10.6 million TEUs (twenty-foot equivalent units). With a presence on every continent and in 150 countries through its network of 650 agencies and branch offices, the Group employs 18,000 people worldwide and 2,400 in Marseilles where is situated its head office.