DFDS Plans Third Bond Issue

Danish shipping and logistics company DFDS said it planned to raise as much as 700 million Norwegian crowns ($117.2 million) by issuing bonds.

"We will be on a road show in coming days to investigate if interest is there," DFDS Chief Financial Officer Torben Carlsen from DFDS said on Monday.

In May DFDS reported a pretax loss of 118 million Danish crowns for the first quarter.

Carlsen said the size of the issue had not yet been decided but it is likely to be around the same level as previous two bond issues.

Last year DFDS sold 700 million Norwegian crowns of five-year bonds, and in 2012 the company issued 500 million Norwegian crowns of four-year bond.

DFDS has not yet decided whether the new issue again will be denominated in Norwegian crowns due to the strong corporate bond market for shipping and oil companies in Norway. It plans to use the proceeds for general corporate purposes.

The shipping company said it does not have an investment rating.

It will use financial instruments to swap the money into Danish crowns if the issue again take place in Norwegian crowns.

($1 = 5.9735 Norwegian crowns) 

Copyright Reuters 2014.