SUCCESSFUL PLACEMENT OF NEW SENIOR SECURED BOND ISSUE
Reference is made to the press release dated 29 May 2017 by Songa
Bulk ASA ("Songa").
Songa has successfully completed the issuance of a USD 75 million
senior secured bond, with a total borrowing limit of USD 150
million. The bond issue was oversubscribed and received strong
demand from high quality investors. Settlement is expected to be 13
June 2017, with final maturity 13 June 2022. The bond issue has a
floating interest rate of 3M LIBOR + 4.50% p.a. An application will
be made for the bonds to be listed on Oslo Børs. Net proceeds from
the bond issue will be used to finance acquisition of additional dry
"We are very pleased with the positive response received from bond
investors. We are happy that we have been able to raise USD 75
million at a very competitive interest margin of 4.50% p.a., as part
of the previously communicated strategy to take on moderate
leverage. Prior to completion of the bond issue, we had received
multiple offers from reputable banks for bank financing at
attractive terms, but the Board of Directors are confident that the
bond issue will provide Songa with increased flexibility at an
attractive interest cost" says Arne Blystad, Chairman of the Board
of Directors of Songa.
ABG Sundal Collier ASA acted as sole manager in connection with the
new bond issue.