Fesco Raises $800 Million in Bond Issue

Fesco Raises $800 Million in Bond Issue

Fesco, the owner of Russia’s largest ocean container carrier, announced it has successfully priced $800 million of bonds.

The net proceeds from two tranches of senior secured notes will be used to repay the company’s outstanding debt and debt incurred in its takeover by the Moscow-based Summa Group in late 2012.

The first tranche of $500 million of notes due 2018 were priced at a yield of 8.00 percent, and $300 million of notes due 2020 were priced at 8.75 percent.

“This was our debut notes issuance on the international debt capital markets, and we are pleased with the results. We saw a solid demand from high-quality international investors,” Fesco President Yuriy Gilts said.

“Following the refinancing of a certain portion of outstanding debt with proceeds from the notes, Fesco will have a solid and efficient capital structure helping us to realize strategic goals and grew the business further.”

Fesco, which is also active in ports, rail freight and logistics, earned $279 million before interest, tax, depreciation and amortization in 2012, an increase of 14 percent on the previous year, on flat revenue of $1.6 billion.