International shipping enterprise Euronav NV has announced that it will repay the US$235 million bond issued to finance the acquisition of 15 VLCC oil tankers from Maersk Tankers Singapore, following a closure of its Initial Public Offering (IPO) of ordinary shares on the New York Stock Exchange.
According to World Maritime News, the vessels have an average age of four years and will expand Euronav’s large tanker fleet.
On January 30, 2015, Euronav issued notice to exercise its right to request the contribution of 30 outstanding perpetual convertible preferred equity securities.
Euronav issued a redemption notice on January 28, 2015 and expects to repay its bond around February 19, 2015.
The bond was issued at 85% of its principal amount with an interest rate of 5.95% for the first year and 8.50% as of the first anniversary date.
The company expects the aggregate principal amount of $75,000,000 to be contributed to Euronav’s share capital through a contribution on February 6, 2015, against the issuance of more than 9.4 million shares.
The shares to be issued will be listed on both Euronext Brussels and the NYSE but tradeable only on Euronext Brussels.