K Line Secures USD 407 Mn Financing
Japanese shipping company Kawasaki Kisen Kaisha (K Line) has decided to raise JPY 45 billion (USD 406.6 million) through a new subordinate loan.
As informed, the loan proceeds will be used for the repayment of interest-bearing debts and capital expenditures mainly for vessels.
In addition to the recently unveiled structural reforms, the company has been developing its core businesses through the ongoing rebuilding portfolio strategy, with an aim to expand the stable income business and achieve sustainable growth. The new financing has been described as one of the measures to accomplish that goal.
The loan, valid from April 2019 through March 2054, has been agreed with lenders including Mizuho Bank, Development Bank of Japan and Sumitomo Mitsui Trust Bank.
As explained, the subordination clause means that the creditors will have a claim subordinated to that of other senior debt creditors in the company’s liquidation, bankruptcy or other similar events.
Earlier this month, K Line said in a revised forecast of consolidated financial results that it expects to record a net loss of JPY 100 billion (USD 895 million) for the year ended March 31, 2019.