Euronav’s $235m Maersk Venture

 

Euronav NV announces today that following the closing of its Initial Public Offering (“IPO”) of its ordinary shares on NYSE, the Company will repay the USD 235.5 million bond issued to partly finance the acquisition of 15 VLCCs from Maersk Tankers Singapore Pte Ltd announced on 5 January 2014.

The Company issued a redemption notice on 28 January 2015 and expects to repay the bond on or around the 19th of February 2015. The bond was issued at 85 per cent of its principal amount with an interest rate of 5.95% per annum for the first year and 8.50% as of the first anniversary date. According to the terms and conditions of the bond, the interest would increase to 11%, 60 days after the listing on NYSE of the Company’s ordinary shares which were issued in the IPO.

As the bond was issued below par and in accordance with IFRS, the Company will amortize USD 20.4 million (non-cash) in the fourth quarter of 2014 bringing the amortization related to this bond for the full year 2014 to USD 31.9 million (non-cash) and a further USD 4.1 million (non-cash) in the first quarter of 2015.

Furthermore, following its IPO, Euronav exercised its right to request the contribution of the 30 outstanding perpetual convertible preferred equity securities and issued such notice on 30 January 2015. The Company expects the aggregate principal amount of USD 75,000,000 to be contributed to Euronav’s share capital through a contribution in kind on 6 February 2015 against the issuance of 9,459,281 shares. The shares that will be issued following such contribution in kind will be listed on both Euronext Brussels and the NYSE but tradeable only on Euronext Brussels.