CSAV Orders Container Ships in Grand Investment Plan
CSAV announces a US$ 570-million investment plan, the prepayment of financial debt and a capital increase.
Compañía Sud Americana de Vapores (CSAV) is a Chilean shipping company founded in 1872, and one of the largest in Latin America.
The main features of the company's plan are as follows:
• Seven 9,300 Teus vessels to be built by Samsung Heavy Industries (SHI); with this, the company will reach a percentage of own fleet in line with the market average and will have one of the most efficient fleets in the industry.
• Prepayment of US$258 million financial debt with AFLAC. This will have a positive impact on CSAV results of around US$50 million and the release of collateral deposits of about US$25 million.
• Capital increase of US$500 million to finance the new investment plan and debt prepayment to be approved during the next special shareholders meeting.
The 9,300 Teus vessels will be built by Samsung Heavy Industries (SHI), South Korea. They will be delivered as from the end of 2014. The objective of this investment is to replace part of the existing chartered capacity. Thus, CSAV will increase its own fleet from the current 37% to around 55%, in line with the industry average and far from the 8% owned at the beginning of 2011.
These new vessels will significantly improve the fuel-consumption efficiency (main cost of the industry) of the CSAV fleet and will lower vessel-chartering costs; allowing the company to operate one of the most efficient containerships fleet of the industry.
Mr. Oscar Hasbún, CEO of CSAV, said: “This important milestone for the company is consistent with the new strategic direction and the restructuring plan finalized during 2012. Additionally, this plan will significantly reduce CSAV financial leverage and will allow the company to acquire large and efficient vessels at attractive prices."