Polarcus completes senior unsecured bond issueCompany News // June 30, 2014
Marine seismic specialist Polarcus has completed a NKr 350 million senior unsecured bond. The coupon is three month NIBOR + 7.25% and the company will swap the issued amount into US$ floating rate obligations, providing a current all-in US$ funding cost of 7.73%.
Settlement is expected to take place on 8 July 2014 and the bonds will have a five year tenor. An application will be made for the bonds to be listed on the Oslo Stock Exchange.
In connection with the new bond issue, the company has repurchased US$9.4 million of the PLCS02 bond issue. Remaining net proceeds from the bond issue will be used to refinance the NKr 226 million outstanding under the NKr 230 million PLCS01 bond issue.
The bond issue extends Polarcus' bond maturity profile significantly and reduces the cost of capital with an updated bond structure.