Canadian ferry owner and operator BC Ferries has entered into an agency agreement with a syndicate of investment banks to issue CAD 250 million (USD 187.7 million) of its senior secured bonds.
The company said that the bonds will bear interest at 2.794 per cent per annum and will mature in 30 years.
The issue is expected to close on October 15, 2019, according to BC Ferries.
The net proceeds from the sale of this series of bonds will be used, together with additional cash on hand, to provide for capital expenditures and general corporate purposes and to fund the series reserve account, the ferry operator noted.