Germany’s biggest charter shipowner said it will use the net proceeds to finance growth and refinance bank liabilities and refinancing costs.
The increase, via a private placement with a 100 percent issue price, will raise the nominal volume of the bond up to €250 million. It will be based on existing bond terms and conditions, including an annual coupon of 8.875 percent with maturity on June 11, 2018, and a denomination of €1,000.
Rickmers was the first German charter shipowner to issue a corporate bond in June in response to the demise of KG limited partnerships, the traditional source of finance for German owners, which shrunk dramatically following the slump in the global shipping market. The bond fell €25 million short of the original €200 million target, but the Hamburg-based company said the issue was a success.
Rickmers also published its first half results, which saw revenue decline more than 4 percent to €288.2 million from €301.4 million in the same period in 2012. Consolidated earnings before interest, tax, depreciation and amortization rose 13.1 percent year-over-year to €108.2 million, but earnings before interest and tax were 29.1 percent lower at €37.7 million euros. The company closed the half in the black, but net income slumped to €1.6 million from €11.1. million.