Chembulk Tankers announced that one of its wholly owned subsidiaries, Chembulk Holding LLC, has priced USD 200 million in senior secured bonds which will carry a coupon of 8.00% and be due in February 2023.
The net proceeds from the bond offering will be used for refinancing of existing bank debt and general corporate purposes. In addition, this bond offering contains a tap issuance feature, where Chembulk can expand the issue amount at a future date to a maximum of USD 250 million, subject to standard issuance tests.
Chembulk CEO Dave Ellis commented, “This successful offering is a notable milestone as we constantly work to maintain Chembulk’s reputation for safe and efficient product deliveries to our customers and will facilitate the renewal and growth of our fleet.”
DNB Markets acted as bookrunner in connection with the placement of the new bond issue, and KKR Capital Markets acted
as financial advisor.
An application will be made for the bonds to be listed on Oslo Børs.
The bonds to be sold in the private placement have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States except
pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the bonds or any securities of Chembulk Tankers or any of its affiliates.