November 23, 2006
B+H Ocean Carriers plans bond issue
B+H Ocean Carriers Ltd. (AMEX:BHO; OSE:BHOC) is looking to raise funds for the acquisition of additional product tankers, for conversion of single-hulled tankers to double-hulled tankers and for the future development of the company's shipping business.
It has retained Pareto Securities ASA (as lead-manager and bookrunner) and Nordea Bank Norge ASA (co-manager) in connection with a contemplated private placement of a new senior unsecured bond loan to be directed to institutional and professional investors in Norway and other selected countries in Europe.
The bond issue will have a loan limit of $60 million, including a first tranche expected to amount to approximately $25-30 million.
B+H says it anticipates using the net proceeds from this offering, together with proceeds of possible additional indebtedness, for the acquisition of additional product tankers, for conversion of single-hulled tankers to double-hulled tankers and for the future development of the company's shipping business. A portion of the proceeds may be used for the repurchase of common shares on the open market from time to time, depending on market conditions.
The bond Issue has not been and will not be, registered under the U.S. Securities Act of 1933 and may not be and is not intended to be offered or sold, directly or indirectly, in or into the United States. The bond Issue will only be offered in a private placement to selected investors by the managers outside the United States in an offshore transaction.
The expected settlement date for the bond loan is set to December 12. 2006 giving a maturity on December 12, 2013; however, the company has received no commitments to purchase the bond loan and there is no assurance the Bond Issue will be completed. The bond loan will carry a coupon of 3 month libor+4.0% p.a.