Hapag Lloyd redeeming ahead of deadline
The Hamburg-based carrier Hapag-Lloyd has decided to partially redeem EUR 170 million of its senior note at a fixed redemption price of 103.375% on 11 February 2019, prior to its maturity in 2022.
The senior note was issued in February 2017 with an aggregate principal amount of EUR 450 million. The annual coupon is 6.75%. This partial redemption will be done from cash proceeds, predominantly resulting from a settled long-term United Arab Shipping Company receivable of USD 152 million (around EUR 133 million as of today).
This receivable arose in the course of the business combination with Hapag-Lloyd from the sale of an investment in an associate.
Nicolás Burr, Hapag-Lloyd's CFO: "Partially repaying this senior note ahead of maturity is a step in the right direction to reach our leverage target, further improve our repayment profile and reduce interest expenses even further." (kd)