The bond, with an aggregate principal amount of US$ 250 million, was issued in October 2010 with an annual coupon of 9.75%, reflecting high interest rate levels as a consequence of the financial crisis at that time.
The partial redemption is conditional upon the successful completion of a refinancing of the Company’s Fleet Financing 2011 with a new vessel financing facility in an amount of at least $115,000,000 provided by existing relationship banks of Hapag-Lloyd.
“With the early partial redemption of our US dollar bond, we are reducing Hapag-Lloyd’s cost of capital with tangible savings to our shareholders”, said Nicolás Burr, Chief Financial Officer of Hapag-Lloyd. “Along with the recent announced restructuring of existing vessel financings the early partial redemption further improves our financial position and we make a step forward in our plan to reduce our interest costs and add more financial flexibility.”
The call notice for the partial redemption was sent to the trustee and bondholders today. The early redemption will take place on 30 December 2015 if the condition to the redemption is fulfilled. The redemption price is 102.4375% of the principal amount of the redeemed bonds, plus accrued and unpaid interest. Hapag-Lloyd may decide to further redeem the US dollar bond in full or partially prior to maturity in 2017.