Reference is made to the stock exchange notice published by Polarcus Limited on 24 June 2014 regarding the contemplated new senior unsecured bond issue.
Polarcus has successfully completed a new NOK 350 million senior unsecured bond. The coupon is 3 month NIBOR + 7.25% and the Company will swap the issued amount into USD floating rate obligations, providing a current all in USD funding cost of 7.73%. Settlement is expected to take place on 8 July 2014 and the bonds will have a 5 year tenor. An application will be made for the bonds to be listed on the Oslo Stock Exchange.
In connection with the new bond issue, the Company has repurchased USD 9.4 million of the PLCS02 bond issue. Remaining net proceeds from the bond issue will be used to refinance the NOK 226 million outstanding under the NOK 230 million PLCS01 bond issue.
Related: Polarcus thinking of bond issue
This bond issue extends Polarcus’ bond maturity profile significantly and reduces the cost of capital with an updated bond structure.
ABG Sundal Collier, DNB Markets, Pareto Securities, and Swedbank Norway are joint managers for the bond issue, while DVB Bank SE acted as financial advisor to the Company.