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Sunday, September 26, 2021

Borealis Finance Sells 10 Container Ships for $203,5M

Maritime Activity Reports, Inc.

July 29, 2021



Oslo-listed Borealis Finance said Thursday it had sold 10 container ships for $203,550,000 in total and that it had informed Nordic Trustee it would prepay $188,000,000 outstanding under its Bond Issue.

The company did not say who the buyers were but said the vessels were on Thursday delivered to new owners. It is possible that the buyer is Global Ship Lease, as Borealis in June said it had agreed to sell twelve container vessels to Global Ship Lease, Inc. for a total consideration of $233.89 million. 

Borealis at the time said the delivery of the vessels was scheduled for the 3rd quarter of 2021, and that following a successful delivery of the vessels, the company was contemplating a repayment of the outstanding bond. 

On July 15, Borealis said it had sold the Bomar Belini, a 2007-built 2,824 TEU containership for a sales price of $16,430,000, and delivered it to new owners. On Wednesday, July 27, it said it had sold the Haydn, a 2006-built 2,741 TEU containership for $13,910,000, and delivered it to the buyer. Together with the $203,550,000 sale announced today, the amount roughly corresponds to that agreed with Global Ship Lease.

Borealis Finance, which indirectly owns a fleet of container and bulk vessels, on Thursday said the following 10 vessels were delivered to new owners:

  • Bomar Milione (2008-built, 4,363 TEU)
  • Nordic Macau (2014-built, 3,421 TEU) 
  • Bomar Rossi (2012-built, 3,421 TEU) 
  • Nordic Hong Kong (2013-built, 3,404 TEU) 
  • Bomar Beijing (2013-built, 3,404 TEU) 
  • Mozart (2007-built, 2,824) -
  • Bomar Hamburg (2006-built, 2,824 TEU) 
  • Ravel (2014-built, 2,546 TEU) 
  • Beethoven (2012-built, 2,546 TEU) -
  • Bomar Rebecca (2008-built, 1,118 TEU)

In a separate statement, released a little over an hour after the sale, the company said it had notified Nordic Trustee, who is acting as bond trustee for its Senior Secured Callable Bond Issue 2017/2022, that the company would exercise the call option to prepay USD 188,000,000 outstanding under the Bond Issue. 

"The outstanding bonds will be redeemed at a price equal to 102.25 percent of the nominal amount for each redeemed bond, together with accrued interest on the redeemed bonds, amounting to USD 195,637,500," Borealis Finance said.

The settlement will take place on  August 13, 2021, and following the prepayment, no further bonds under the Bond Issue will be outstanding. 

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