CSAV Confirms $570 Mln Investment Plan for New Vessels

The Board of Directors of Compañía Sud Americana de Vapores S.A. (CSAV) approved yesterday an investment plan of US$ 570 million consisting in the acquisition of seven new containerships and the prepayment of a debt facility of US$258 million at a significant discount.

The 9,300 Teu vessels will be built by Samsung Heavy Industries (SHI), South Korea. They will be delivered as from the end of 2014.

These new vessels will significantly improve the fuel-consumption efficiency (main cost of the industry) of the CSAV fleet and will lower vessel-chartering costs; allowing the company to operate one of the most efficient containerships fleet of t he industry.

CSAV is planning to finance the newbuilding order with 40% equity (about US$230 million) and 60% financial debt (about US$340 million). CSAV also has the option to order up to seven additional vessels on similar conditions.

Mr. Oscar Hasbún, CEO of CSAV, pointed out:

“This important milestone for the company is consistent with the new strategic direction and the restructuring plan finalized during 2012. Additionally, this plan will significantly reduce CSAV financial leverage and will allow the company to acquire large and efficient vessels at attractive prices. The newbuilding investment plan is aligned with the strategic direction of joint operations, search of economies of scale, right proportion of own fleet and cost efficiency. Therefore CSAV will be able to maintain the already gained efficiencies further improving the company’s costs structure”.

[mappress]
Press Release, April 4, 2013