Americas News
Banks Agree Funding for CSAV Ship Orders
Chilean carrier Compania Sud Americana de Vapores (CSAV) has reached a $347 million financing deal with an international consortium of banks to help it buy seven new ships, Reuters reports.
CSAV announced a public offering in April, saying it wanted to raise $500 million, but it was unable to raise the full amount.
The company plans to pay for 60 percent of the new ship purchases with the bank loans and fund the remainder with $330 million raised in the equity financing.
The banks involved in the deal are the Export-Import Bank of Korea, Korea Exchange Bank, Korea Development Bank, Banco Santander-Chile, Citibank N.A., and Deutsche Bank A.G.
CSAV has faced losses in recent years as shipping rates have fallen and fuel prices have been high.
The company turned a profit in Q3 2012, something it attributed to a major restructuring effort, but it has reported more difficulty since then due to another drop in rates.
