JOC Staff | Oct 30, 2012 11:06AM EDT
Norwegian Car Carriers is issuing shares to raise 80 million to 100 million kroner ($13.9 million to $17.4 million) to help finance the acquisition of a secondhand vessel to transport automobiles.
The Oslo-listed company said it already has received offers of debt financing to cover 70 percent of the cost of the 2010-built ship that can carry up to 6,430 automobiles.
NCC, which operates a 13-ship fleet, has agreed to a seven-year time charter for the vessel with a major Asia-listed car carrier operator and logistics company.
The charter will add about $60 million to the company’s order backlog and will earn an estimated $6.3 million before interest, tax, depreciation and amortization during the first year of operation.
The acquisition is conditional on the successful completion of the private placement, NCC said.
Current shareholders, including Klaveness Ship Investments and Wilhelmsen Lines Shipowning have committed to subscribe to the share issue.
