DFDS Mulls Refinancing to Reduce Cost, Extend Debt Maturity
Danish shipping and logistics company DFDS is exploring a new bond issue to refinance existing bonds and extend debt maturity as part of “the continuous pursuit of improving the financing cost.”
As informed, the company intends to issue new DKK and/or NOK denominated senior unsecured bonds with an expected maturity of five years in the near future.
DFDS has mandated Danske Bank A/S, Nordea Bank AB and Nykredit Bank A/S to arrange fixed income investor meetings starting on September 15, 2017. However, there is no certainty that the issue of the new bonds will be initiated or consummated, the company said.
Furthermore, a tender offer is also being launched for the holders of DFDS’ existing NOK 700.000,000 bonds due March 21, 2018.
Subject to the applicable minimum denomination in respect of the 2013 bonds, the purchase price payable per bond having a nominal amount of NOK 1.000,000 will be 101.500%.
DFSS explained that the tender offer is being made as part of the company’s commitment to actively manage its financing, including management of upcoming redemptions, lengthening and diversification of the debt maturity profile, and, in addition, to allow current holders to roll their current position into the new bonds.
The offer expires at 12:00 CET on September 21, 2017, unless extended, reopened, withdrawn or terminated at the absolute and sole discretion of DFDS.