Navig8 Taps into OTC Market

NNavig8 Taps into OTC Market
STX Jinhae shipyard, South Korea

Navig8 has turned to Norway’s over-the-counter (OTC) market to bankroll a new order of four chemical tanker newbuildings at STX Offshore & Shipbuilding.

The company managed to raise USD 110 million to support the order, but would not comment on the equity raise source, stating that it is a ”private placement”.

However, rumour has it that Navig8 Chemical Tankers made the first deal on Oslo’s OTC exchange.

The new equity will partly fund the four 49,000-dwt, IMO type II chemical tankers to be built at STX, as well as its existing orderbook for eight 25,000-dwt units at Japan’s Kitanihon Shipbuilding Co and Fukuoka Shipbuilding Co, and 18 vessels of 37,000 dwt at Korea’s Hyundai Mipo Dockyard (HMD),  according to Navig8 Chief Executive Nicolas Busch.

The latest order stipulates four USD 40m firm vessels to be built by STX, with four additional options.

According to Navig8 the deliveries are scheduled for 2016.

Navig8 Chemical Tankers Inc, a joint venture between private equity fund Oaktree Capital Management and Navig8 Group, has 30 ECO chemical newbuilds under construction in Korea and Japan.

World Maritime News Staff; August 12, 2014